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CHANGE ORDER

No. 2
PROJECT: 2018 Sewer Replacement Harvard St
OWNER’S CONTRACT NO: EFB0779-053118
EXECUTED CONTRACT DATE: August 13, 2018
DATE OF ISSUANCE: November 28,2018 EFFECTIVE DATE: Upon City Approval
OWNER: City of Nashua, NH
OWNER’s Purchase Order NO.: 143673
CONTRACTOR: Northeast Earth Mechanics, Inc.
ENGINEER: DPW Engineering

Reason for Change Order:

The purpose of this Change Order No. 2 is to replenish the funds that were reallocated to Chase Street to repair a
failed 15 inch sewer, back to the Harvard St. Sewer Replacement Project for construction in the spring.

You are directed to make the following changes in the Contract Documents:

Add quantities and value in the attached Table back into the contract for work related to Harvard St.

Change Order # 2 1 of 2
2018 Sewer Replacement — Harvard St.

Summary

CHANGE IN CONTRACT PRICE:
Original Contract Price

$692,905.20

CHANGE IN CONTRACT TIMES:
Original Contract Times

Substantial completion: 60 days from NTP
Ready for final payment: 74 days from NTP

Net changes from previous Change Orders

$0.00

Net change from previous Change Orders

Substantial completion: n/a
Ready for final payment: n/a

Contract Price prior to this Change Order

$692,905.20

Contract Times prior to this Change Order

Substantial completion: n/a
Ready for final payment: n/a

Net Increase of this Change Order

$440,037.16

Net Increase (deerease} of this Change Order

Substantial completion: see below
Ready for final payment: see below

Contract Price with all approved Change Orders

Contract Times with all approved Change Orders

$1,132,932.30 Substantial completion: Jume 30, 2019
Ready for final payment: July 36, 2019
RECOMMENDED: ACCEPTED: APPROVED:
By: By: By: .
DPW Northeast Earth Mechanics, LLC Mayor Jim Donchess
Engineer (Authorized Signature) Owner
(Authorized Signature) (Authorized Signature)
Date:
Date: Date:
Change Order # 2 2 of 2

2018 Sewer Replacement — Harvard St.

2018 Sewer Replacement - Harvard St

Change Order No. 2

Harvard Street Sewer Replacement Quantities

Northeast Earth Mechanics

so Bid Item Description
Quantity| Units Unit Price Cost
ib |Remove Existing Sewer and Replace with 12 inch PVC Sewer SDR-35 830 LF $410.00 $340,300.00
if Replace Existing MH with 4' Diam. Sewer Manhole 40 VF $1,000.00 $40,000.00
2b _|Remove Drain Pipe and Repl, with 8 - 12" PVC SDR-35 Drain Pipe 275 LF $150.00 $41,250.00
6e Temporary Bituminous Pavement 375 TON $1.00 $375.00
6g |Sawed Bituminous Pavement 1,210 LF $0.01 $12.10
8b | Flagmen 1 Allowance] $8,000.00 $8,000.00
8c Maintenance of Traffic 1 LS $10,000.00 $10,000.00
8} Remove and Reset Stop Sign 1 EBA $100.00 $100.00

$440,037.10

Finance Committee - 11/15/2018 Page 2
ON THE QUESTION
Alderman Laws

This was, if | am not mistaken, this is the one where faulty equipment that we have right now that you are
replacing?

Nick Miseirvitch, IT Manager Infrastructure

Faulty Software.

Alderman Laws

Faulty software, alright, | just wanted to make sure, thank you.
MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Contract Renewal — Internet Service (Value: $1,214 Monthly)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND RENEW THE CONTRACT WITH
CONSOLIDATED COMMUNICATIONS, INC., FOR A MONTHLY AMOUNT OF $1,214. SOURCE OF
FUNDING IS DEPARTMENT 122, INFORMATION TECHNOLOGY; GENERAL OPERATING FUND
MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Motorola Maintenance and System Upgrade Agreements (Value: $174,868)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACTS TO
MOTOROLA IN THE AMOUNT OF $174,868. FUNDS ARE AVAILABLE IN DEPARTMENT 157, CITYWIDE
COMMUNICATIONS; GENERAL OPERATING FUND

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: 2018 Paving Program — Newport Contract Change Order No. 3 (Value: $209,180)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND APPROVE CHANGE ORDER
NO. 3 TO THE CONTRACT WITH NEWPORT CONSTRUCTION IN THE AMOUNT OF $209,180. SOURCE
OF FUNDING IS DEPARTMENT 160, ADMINISTRATION/ENGINEERING PAVING BONDS

ON THE QUESTION

Mayor Donchess

We have Mr. Dookran, the City Engineer, here on the next several items, if you have questions or comments.
Any discussion on this item?

Alderwoman Kelly

| was just wondering if you could give us a general overview of how the paving program is going, we definitely
hear about it so wanted to know what is coming from at your end?

Finance Committee - 11/15/2018 Page 3

Stephen Dookran, City Engineer

Steve Dookran, City Engineer; the paving program this year has two parts to it. It has the piece that is paid for
with the large City bond and the next one is being paid for primarily with the Federal Highway Grant. The last
paving program is pretty much done for the year, we just finished Concord Street. In my opinion it went rather
well, we did a lot of work, a lot more work than we have been used to over several years in the past. | was
pleasantly surprised that we could get this much done this year. We've got | think like 25 miles done when we
typically would just get 5 miles in one year. Some hiccups, you know, there are always drainage problems
inherent in the program. The program is meant as a pavement management program not to solve drainage
problems. We try to solve the obvious ones, we don’t have the funds to fix all the drainage problems, but we
try to at least address those that we can with the limited funds that we have.

Some streets we didn’t get to because of utility issues, gas, water, sewer. We had to add some streets that
came up towards the end because of the condition of the last winter; the deterioration that was most significant
when we were putting the plan together. So we added those streets as well, so overall | think we had a pretty
successful year, despite the issues.

Under the Federal Program which the next item actually will talk about, we did the pavement on Somerset
Parkway and Amherst Street. We couldn't get to the top simply because it got too cold and the amount of work
that is needed to be done, so we are closing up those two streets. Some striping will be done next week and
Kinsley Street is next on the list for that program. We can’t get to Kinsley Street to do what we had planned,
but what we decided over the last two days is that the street department will do a shimming, a thin layer over
the worst part of Kinsley Street in two weeks. It was a small amount of money we will do that at least a good
ridable surface over the wintertime. It is not expected to last long, so next year we will come in and do the
proper paving that we had planned.

There is still some utility work to be done and that also caused the paving to be pushed out this late. We also
have an item; you will see sewer work for Kinsley Street. So that is essentially what we deal with when it
comes to paving, we always are chasing utilities, it is always worse than anticipated, but we deal with it.

Alderwoman Kelly

Were there any unexpected, especially on Kinsley that pushed you back more or is that typical to what you
would have seen?

Mr. Dookran

Well the item that | am talking about on Kinsley, there is a sewer which | will call another sewer that we found
that has to be dealt with. That work hasn’t been done yet and water came in towards the end, we’ve got to get
water in. Gas did their work, fortunately gas got their work in earlier, they are still doing some trenches across
the street to make connections and so on; in fact the gas company only came in this year, normally we know
ahead of time, a couple years ahead of time of the work. They said they had to get on Kinsley Street this year
so we had to let them go first and they spent a lot of time especially on the western end of the street near the
hospital.

We always anticipate problems with utilities but in this case on Kinsley the amount of work that they needed to

do was surprising, but we can’t say no because the last thing you want to do is pave the street and then have a
gas failure or something like that and then the street is all torn up again.

Alderwoman Kelly
Thank you.

MOTION CARRIED

Finance Committee - 11/15/2018 Page 4

From: Dan Kooken, Purchasing Manager
Re: 2018 Federal Paving Program — Change Order No. 1 (Value: $611,548)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND APPROVE CHANGE ORDER
NO. 1 TO THE CONTRACT WITH NEWPORT CONSTRUCTION IN THE AMOUNT OF $611,548. FUNDS
ARE AVAILABLE IN DEPARTMENT 160, ADMINISTRATION/ ENGINEERING; NEW HAMPSHIRE DOT
NASHUA ROADWAY IMPROVEMENTS GRANT AND PAVING BONDS

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: 2018 Sewer Replacement — Kinsley Street Change Order #1 (Value: $27,000)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND APPROVE CHANGE ORDER #1
TO THE CONTRACT WITH NEWPORT CONSTRUCTION IN THE AMOUNT OF $27,000. SOURCE OF
FUNDING IS DEPARTMENT 169, WASTEWATER

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: | Water Booster Station Project — Construction Phase Services (Value: $93,000)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO

WOODARD CURRAN IN THE AMOUNT OF $93,000. FUNDS ARE AVAILABLE IN DEPARTMENT 169,
WASTEWATER

Mayor Donchess

Thank you for coming; could you please introduce yourself and give us an explanation of the Water Booster
Station Project?

William Keating, Wastewater Project Engineer

Yes | am William Keating, Wastewater Engineer; | am sitting in for Dave Boucher tonight. The Water Booster
Station is a project at the Wastewater Plant to replace the existing one which is outdated and in need of
complete upgrades. It provides drinking water at the plant and it also used to run some of our pumps for seal
water and fire protection water.

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: | Water Booster Station Project — Construction (Value: $831,164)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO T-
BUCK CONSTRUCTION IN THE AMOUNT OF $831,164. SOURCE OF FUNDING IS DEPARTMENT 169,
WASTEWATER; WERF AND WATER BOOSTER STATION SRF LOAN

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: 2018 Ford Police Interceptor Utility Vehicle (Value: $38,092)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND APPROVE THE PURCHASE
FROM M-H-Q MUNICIPAL VEHICLES IN THE AMOUNT OF $38,092. FUNDS ARE AVAILABLE IN
DEPARTMENT 150, NASHUA POLICE DEPARTMENT; CERF & RISK MANAGEMENT

CITY OF NASHUA, NEW HAMPSHIRE

RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 202]
Net changes in fund balances - Total governmental funds $ 10,949.29)
* Govemmental funds report capital outlays as expenditures. However,

in the Statement of Activities the cost of those assets is allocated
over ther estimated useful lives and reported as depreciation expense:

Capital outlay $1,745,516
Depreciation (20,635,177)
Loss on disposal of capital assets (2,050,269)

¢ The issuance of long-term debt (e.g., bonds and leases) provides
current financial resources to governmental funds, while the
repayment of the principal of long-term debt consumes the financial
resources of governmental funds. Neither transaction. however,
has any effect on net position:

Issuance of general obligation and refunding bonds (43,272,500)
Issuance of capital lease (6,671,814)
Repayment of capital leases 91,743
Repayments of debt 18,424,500
Bond premiums received on new issuances of bonds (2,349,718)

* Revenues m the Statement of Activities that do not provide current
financial resources are fully deferred in the Statement of Revenues,
Expenditures and Changes in Fund Balances. Therefore. the
recognition of revenue for various types of accounts receivable
(Le., property taxes) differ between the two statements. This amount
represents the net change in unavailable revenue. (168,270)

* To record amortization of Equity Interest in Pennichuck Waterworks (3,690,000)

* Inthe Statement of Activities, mterest is accrued on outstandmg
long-term debt, whereas in governmental funds interest is not
reported until due (461,009)

* Some expenses reported in the Statement of Activities do not
require the use of current financial resources and therefore, are
not reported as expenditures in the governmental funds:

Decrease in compensated absences liability 1,692,908

Increase m total/net OPEB hability and related deferred
outflows and mflows of resources (1.960,938)

Increase in net pension liability and related deferred

outflows and inflows of resources (23,312,997)
Amortize bond premiums 1,467,129
Amorttize gains and losses on pnor years refunding bonds (41,638)

* Intemal service funds are used by management to account for health
insurance and workers' compensation activities. The net activity of

internal service funds is reported with Govemmental Activities 321,981
Change in net position of governmental activities $ (19,921,262)

The accompanying notes are an integral part of these financial statements

38

Finance Committee - 11/15/2018 Page 5

ON THE QUESTION

Mayor Donchess

Karen Smith is here and who is our other visitor?

Brian Sojka, Police Supervisor

Brian Sojka, Police Supervisor, Nashua Police.

Karen Smith, NPD Business Manager

Business Manager.

Alderman Caron

Why is money coming out of RISK, was this to replace one of the vehicles that was in an accident?
Mr. Sojka

It was a totaled vehicle.

Alderman Caron

Ok, thank you.

Alderman O’Brien

| would like to follow-up on Alderman Caron’s question. So some money is coming from the other party
involved in this accident. If there is litigation we are getting our fair share depending upon what had happened
with this?

Mr. Sojka

What the value of the vehicle is, yes.

Alderman O’Brien

As we would with any other accident occurs with any citizen.

Mr. Sojka

Yes.

Alderman O’Brien

Thank you.

MOTION CARRIED

Finance Committee - 11/15/2018 Page 6

From: Dan Kooken, Purchasing Manager
Re: Contract for Board of Public Works Pension Administration Services (Value: $49,000)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON BOARD
OF ALDERMEN APPROVAL, AWARD THE CONTRACT TO HOOKER AND HOLCOMBE IN THE
AMOUNT OF $49,000. SOURCE OF FUNDING IS VARIOUS DPW ADMINISTRATION PENSION
ACCOUNTS

ON THE QUESTION
Alderman O’Brien

Thank you Mr. Mayor. | wonder if | could invite my colleagues up if | may at this particular time. | would like to
introduce Mr. Fredette and Mr. Danielson. Mr. Mayor if | may | would just like to give a very brief background
of basically what is happening here. The DPW pension is separate from the State, it is very unique. The
municipality, the City of Nashua, we run it; we have been running it since about 1947 and | am very happy to
say as the liaison and one of the trustees, the pension system is 86.6% funded. It is one of the lowest
pensions that is very well run by the City.

The problem at hand that is coming up on the horizon, currently the software that the City owns that kind of
runs this, the admin, is being phased out. And with it being phased out, we are going to need either to get
brand new software or look at another venue. If we were to get out own particular software, this could be a
cost to the City of around about $100,000.00 annually it would probably even cost us even more to have
people to run it and maintain it within that time. Ve currently have a contract with Hooker & Holcombe, they
manage it right now, part of the program and they would be working with this particular delivery.

There is a lot of good things about this. Right now, with having a third party running this particular type of
thing, it seems to fall in line with other municipalities, they do have that equally as well as compared to us. The
other thing with this, it would reduce City staff costs to the City, there are currently people running this. Again it
frees up the question with the admin program and yet we are not giving away any authority even though it will
be run by the third party. We do have oversight over Hooker & Holcombe. Our benefits and more important to
our employees that we have responsibility to, they will be able to access their accounts better in the future with
Hooker & Holcombe than they can today.

In other words, we are going to change the format, they are going to be paid monthly instead of weekly, but
any employee, even if you are not retired, will be able to access the computer program and go on and get up to
the minute information. It seems a lot better and it provides a better customer service to the people that
depend upon us to run this particular program. And even though we are spending $49,000.00 on this
particular program, again the cost savings is in the City’s maintenance of this. This comes, and | am proud to
say, this comes with the full recommendation of the Board of Trustees. It will be a five year contract and |
guess five years contracts will have to be brought before the Full Board and voted by the Full Board. As one of
the liaisons and trustees to the Pension Board, | think this is a very good deal and if | may say comes with full
recommendation from the Board of Trustees of the Pension System. If there are any questions; | yield my time
to Mr. Danielson, who could be available for any questions.

Alderman Caron
When is this monthly stipend going to come out and have the employees been notified of this change?

Derek Danielson, Assistant Treasurer

Derek Danielson, Assistant Treasurer, we are anticipating getting the monthly payments in July and the
employees will be notified in advance. We are waiting to get this contract approved before we notify the
employees. However, in the Annual Report that the Board of Trustees just issued, we did mention that this
was something that was coming down the pike.

Finance Committee - 11/15/2018 Page 7

Alderman Caron

Who got the annual report? You don’t send that out to your pensioners do you?

Mr. Danielson

We don’t have the e-mail addresses of the pensioners.

Alderman Caron

So really they don’t know unless they happen to hear about it.

Mr. Danielson

Correct. They would have to speak with somebody active or check the website.

Alderman Caron

| guess there are some concerns because you are dealing with employees who have been getting weekly
checks forever and a day and then to get this dumped on them, | think they need to have an advance on that,
you know?

Mr. Danielson

Mr. Mayor, we understand that. But the fact is, | don’t think you can find many groups that are retired that get
weekly pension checks, it is usually monthly including social security. So they are going to be notified ahead of
time so they will be fully aware of it and they are going to be paid, the plan is, now I’m not sure if it is going to
work that way, but the plan is that they would get their last check in the last week of June and the first week of
July they would get the whole four weeks. So it shouldn’t be a problem for them but they will be notified of that.
Alderman Caron

| think it’s important.

Mr. Danielson

Yes | do too.

Alderman Caron

If we can update | don’t have a problem with that but you are talking about people who have been getting
checks for 30 years and you want them to know. And a lot of them don’t use computers so they don’t have
access to that kind of thing. But | think it is a great idea if we can outsource it.

Alderman O’Brien

Thank you and Alderman Caron what you say is so true. At these trustees meetings we do take into account,
we do have sometimes visitors of people who have retired, they are welcome to the trustee meetings and they
have shown up. And yes, some of them are not computer savvy and everything else, and we are trying to take
that all into account. And like Mr. Fredette has mentioned, | think this will be a better program for both the
beneficiaries our employees and retirees and for the City. This follows like with the other pension plans,
where if you’ve got a pension plan with the State, it does come monthly and not weekly. We are very unique

with the weekly. So this kind of saves in itself in some of the administration costs from going monthly to
weekly.