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As a significant change in one or more of these estimates could affect the profitability of the
Company’s contracts, management reviews and updates the Company’s contract-related
estimates regularly through a Company-wide project review process in which management
reviews the progress and execution of the Company's performance obligations and the
estimate at completion. As part of this process, management reviews information including,
but not limited to, any outstanding key contract matters, progress towards completion and
the related program schedule, and the related changes in estimates of revenues and costs.
Management must make assumptions and estimates regarding labor productivity and
availability, the complexity of the work to be performed, the cost and availability of materials,
among other variables.

The Company recognizes adjustments in estimated profit on contracts under the cumulative
catch-up method. Under this method, the impact of the adjustment on profit recorded to
date is recognized in the period the adjustment is identified. Revenue and profit in future
periods of contract performance is recognized using the adjusted estimate. If at any time the
estimate of contract profitability indicates an anticipated loss on the contract, the Company
recognizes the total loss in the period it is identified.

Variable Consideration

Variable consideration is estimated at the most likely amount to which the Company is
expected to be entitled. Any variable consideration is included in the transaction price to the
extent it is probable that a significant reversal of cumulative revenue recognized will not
occur when the uncertainty associated with the variable consideration is resolved. Estimates
of variable consideration and the determination of whether to include estimated amounts in
the transaction price are based largely on assessments of legal enforceability, the Company’s
performance, and all information (historical, current, and forecasted) that is reasonably
available to management.

Variable consideration is allocated entirely to a performance obligation or to a distinct good
or service within a performance obligation if it retates specifically to efforts to satisfy the
performance obligation or transfer the distinct good or service, and the allocation depicts the
amount of consideration the Company expects to be entitled.

Significant Judgments

The Company recognizes contract revenue for financial reporting purposes over time.
Progress toward completion of the Company's contracts is measured using a time-based
criterion for each contract and requires significant judgment. This method is used because
management considers time-elapsed to be the best available measure of progress on
contracts.

105

THE CITY OF NASHUA “The Gate Cy"

Financial Services

Purchasing Department

Auguesi 9, 2018
Memo #19-037

TO: MAYOR DONCHESS
FINANCE COMMITTEE

SUBJECT: 2018 CIPP LINING - CHANGE ORDER NO. 1 (VALUE: $720,000)
DEPARTMENT: 169 WASTEWATER; FUND: WASTEWATER

Please see the attached communication from Stephen Dookran, P.E., City Engineer, dated July 26, 2018
for information related to this purchase.

Pursuant to § 5-78 Major purchases (greater than $16,000} A. All supplies and contractual services,
except as otherwise provided herein, when the estimated cost thereof shall exceed $10,000 shall be
purchased by formal, written contract from the lowest responsible bidder, after due notice inviting bids.

The City Engineer, Board of Public Works (July 26, 2018 meeting) and the Purchasing Department
recommend the award of this Change Order No. 1 in an amount of $120,000 to Layne Inliner of
Fairfield, ME.

urchasing Manager

Co: S Dookran L Fauteux

i
229 Main Street ¢ Nashua, New Hampshire 03061 « Phone (603) 589-3330 e Fax (603) 589-3238 |

{

To:

From:

Re:

HK. Motion:

Discussion:

City of Nashua, Public Works Division

Board of Public Works Meeting Date: July 26, 2018

Stephen Dookran, P.E., City Engineer
Engineering Department

2018 CIPP Lining
Change Order No. 1

To approve Change Order No. | to the construction contract for the 2018 CIPP Lining
with Layne Inliner of Fairfield, ME in the amount of $ 120,000. Funding will be
through: Department: 169 Wastewater; Fund: Wastewater; Activity: Sewer Rehab.

When addressing failing and aging sewers, rehabilitation of the sewers using cured-in-
place pipe lining (CIPP) is more cost effective than excavating and replacing the pipe.
Layne Inliner was awarded the contract to line approximately 6,200 feet of sewer in
April 2018. Since that time, the Wastewater Department has continued to video inspect
sewer lines and have found at least two additional pipes that require rehabilitation due
to deterioration in the pipe. The pipe located in Charles Street, constructed 1886 to
1922, has had a recent sinkhole and video inspection has shown the entire segment from
Fairmount to Franklin requires rehabilitation. Also, the sewer in C Street, constructed in
1892, also has been identified as needing immediate rehabilitation. This request is an
estimate for the work in these additional streets and further finding may require
additional funding.

In addition, a part of this change order is increase in the contract duration. The contract
completion date was originally October 6, 2018 and will now be extended to December

31, 2018.

With this Change Order No. 1, the total value of the contract is $ 835,657.50.

CHANGE ORDER

No. I
PROJECT: 2018 CIPP Lining
OWNER’S CONTRACT NO: I1FB1087-041718
EXECUTED CONTRACT DATE: May 18, 2018
DATE OF ISSUANCE; August 8, 2018 EFFECTIVE DATE: Upon City Approval
OWNER: City of Nashua, NE
OWNER’s Purchase Order NO.: 1441291
CONTRACTOR: Layne Snliner
ENGINEER: DPW Engineering

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

Description:
Add CIPP lining and associated work for 8 inch and 10 inch sewer pipe. Increase the quantity of CIPP lining

and associated work for 12 inch sewer pipe. Add addition Manhole lining using cement for manholes located on
sewers that dead end.

Justification:

When addressing failing and aging sewers, rehabilitation of the sewers using cured-in-place pipe lining
(CIPP) is more cost effective than excavating and replacing the pipe. Layne Inliner was awarded the
contract to line approximately 6,200 feet of sewer in April 2018. Since that time, the Wastewater
Department has continued to video inspect sewer lines and have found at least two additional pipes
that require rehabilitation due to deterioration in the pipe. The pipe located in Charles Street,
constructed 1886 to 1922, has had a recent sinkhole and video inspection has shown the entire
segment from Fairmount to Franklin requires rehabilitation. Also, the sewer in C Street, constructed in
1892, also has been identified as needing immediate rehabilitation. In addition, side streets off of
Lake Street (lining of which is included in the original contract) have been identified for lining and
are 8 inches and 10 inches in size, so a pay item has been added to account for the smaller sewers.
This request is an estimate for the work in these additional streets and further findings may require
additional funding,

In addition, a part of this change order is increase in the contract duration. The contract completion
date was originally October 6, 2018 and will now be extended to December 31, 2018.

Change Order # 1 1 of 2
2018 CIPP Lining

Summary

CHANGE IN CONTRACT PRICE:
Original Contract Price

$715,657.50

CHANGE IN CONTRACT TIMES:
Original Contract Times

Substantial completion: September 21, 2018
Ready for final payment: October 6, 2018

Net changes from previous Change Orders

$0.00

Net change from previous Change Orders

Substantial completion: September 21, 2018
Ready for final payment: October 6, 2018

Contract Price prior to this Change Order

$715,657.50

Contract Times prior to this Change Order

Substantial completion: September 21, 2018
Ready for final payment: October 6, 2018

Net Increase (deerease} of this Change Order

$119,989.50

Net Increase eerease} of this Change Order

Substantial completion: 70 calendar days
Ready for final payment: 85 calendar days

Contract Price with all approved Change Orders

Contract Times with all approved Change Orders

$835,647.00 Substantial completion: December 16, 2018
Ready for final payment: December 31, 2018
RECOMMENDED: ACCEPTED: APPROVED:
By: | By: By
DPW Contractor Mayor Jim Donchess
Engineer Owner

(Authorized Signature)

(Authorized Signature)

Date:

(Authorized Signature)

Date:

Change Order # 1
2018 CIPP Lining

2 of 2

IFB1087-041718

2018 CIPP Lining Projec
City of Nashua, New Hampshire ining Project

Division of Public Works
2018 CIPP Lining

Change Order No. 1

Item No. Change. Units Item Description Unit Price Total Price
——" Order i — — ——
Quantity
1k (3) 238 LE 8” CIPP Per foot $25 $25.00 $5,950.00
ik (8a) 238 LF 8” Pre CCTV Per toot $3.50 $3.50 $833.00
1k(8b) 238 LF 8” Post CCTV Per foot $1 $1.00 $238.00
1k(10) 1279 LF 10” CIPP 278 Per foot $27.00 $34,533.00
1K(10a) 1279 LF 10” Pre CCTV Per foot $3.50 $3.50 $4,476.50
1k(10b) 1279 LF 10” Post CCTV Per foot $1 $1.00 $1,279.00
1k(12) 1,580 LF 12" CIPP Lining (increase ) $30.00 $47 400.00
1k(12a) 1,580 LF Pre-Lining Video for 12" Pipe CIPP Lining (increase) $3.50 $5,530.00
ik(2b) 1,580 LF Post-Lining Video for 12" Pipe CIPP Lining (increase) $1.00 $1,580.00
In 24 EA Cutting and Removal of Protruding Lateral Pipe
| Up to 12" Diam. (increase) $285.00 $6,840.00 |
100 70 VE Manhole Lining - Cement $154.00 $10,780.00
2s(8-10m) 5 EA Root Cutting 8'-10" Pipe - Medium Roots $110.00 $550.00
[ Total CO 1 i $119,989.50
Total Original Contact $715,657.50
Total $835,647.00
Contractor:

wrized Signature:

Date:

Change Order #1 BS - 1 of 1

REPORT OF THE FINANCE COMMITTEE

AUGUST 1, 2018

A meeting of the Finance Committee was held on Wednesday, August 1, 2018, at 7:00 p.m. in the Aldermanic
Chamber.

Mayor Jim Donchess, Chairman, presided.

Members of the Committee present: Alderman Michael B. O’Brien, Vice Chair
Alderwoman-at-Large Shoshanna Kelly
Alderman Patricia Klee
Alderman June M. Caron
Alderman Linda Harriott-Gathright

Members not in Attendance: Alderman-at-Large Brandon Michael Laws

Also in Attendance: Dan Kooken, Purchasing Manager
David G. Fredette, Treasurer/Tax Collector
Jonathan Ibarra, Superintendent of Streets
James Vayo, Downtown Specialist
Heidi Peek-Kukulka, Health Officer
Mandeep Gill, Senior Staff Engineer

PUBLIC COMMENT - None
COMMUNICATIONS

From: Dan Kooken, Purchasing Manager
Re: Court Street Fire Station - Glass Door Replacement (Value: $51,189)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
NASHUA GLASS IN AN AMOUNT NOT-TO-EXCEED $51,189. FUNDS ARE AVAILABLE IN
DEPARTMENT 184, URBAN PROGRAMS; COMMUNITY DEVELOPMENT BLOCK GRANT; COURT
STREET PUBLIC FACILITY IMPROVEMENT

ON THE QUESTION

Mr. Vayo is here to answer any questions if anybody has any questions. Are there any questions or
comments?

MOTION CARRIED

Finance Committee - 8/1/2018 Page 2

From: Dan Kooken, Purchasing Manager
Re: Contract Renewal with the Humane Society of Greater Nashua for FY19 (Value: $99,081)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND AWARD THE CONTRACT TO
THE HUMANE SOCIETY OF GREATER NASHUA IN THE AMOUNT OF $99,081. SOURCE OF FUNDING
IS DEPARTMENT 109, CIVIC & COMMUNITY SERVICES; ANIMAL CONTROL SERVICES

ON THE QUESTION

Mayor Donchess

The Health Officer is here if anyone has any questions about this particular item. Are there any questions or
comments? Why doesn’t Ms. Peek come on up.

Alderman Klee
This contract is anytime we have a dog or cat or ferret or any type of animal to be housed there or impounded
is that correct? Is that a flat fee that you just pay this $99,000.00 for the entire year regardless of how many

animals?

Heidi Peek-Kukulka, Health Officer

It is a flat fee according to my understanding and it primarily for the ten day bite quarantine of those three
animals that are mentioned in the RSA’s regarding rabies control.

Alderman Klee

| Know when they are picked up and so on and it is for the vetting, do any of the owners have to repay any of
this amount?

Ms. Peek-Kukulka

Sometimes they do, very often people are unable to pay.

Alderman Klee

Okay, thank you.

MOTION CARRIED

From: Dan Kooken, Purchasing Manager

Re: Contract for 2018 Federal Paving Program-Amherst St. (Rt. 101A), Somerset Parkway, Broad Street
(Rt. 130) and Kinsley Street (Rt. 111) (Value: $3,987,519)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND, CONTINGENT UPON

BOARD OF ALDERMEN APPROVAL, AWARD THE CONTRACT TO NEWPORT CONSTRUCTION

CORP. IN THE AMOUNT OF $3,987,519. SOURCE OF FUNDING IS DEPARTMENT 160,

ADMINISTRATION/ENGINEERING; NH DOT NASHUA ROADWAY IMPROVEMENTS GRANT

ON THE QUESTION

Mayor Donchess

Why don’t you come on up, in case there are questions and comments. Briefly, what this is the Broad Street
Parkway money which has been repurposed away from the Broad Street Parkway into paving.

Finance Committee - 8/1/2018 Page 3
This was Federal money that was not used for the Broad Street Parkway and this would award this contract for
this amount for the paving of these major streets, Amherst Street, Somerset Parkway, Broad Street and
Kinsley Street; much or all of which we hope to get done this year. But are there any questions or comments?

MOTION CARRIED

From: Dan Kooken, Purchasing Manager
Re: Change Order #1 2018 Paving Program-Castings-Additional Purchase (Value: $137,400)

MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND APPROVE CHANGE
ORDER #1 TO THE CONTRACT WITH EJ PRESCOTT, INC., IN THE AMOUNT OF $137,400. FUNDS
ARE AVAILABLE IN DEPARTMENT 169, WASTEWATER

ON THE QUESTION

Alderman Klee

Sorry for so many questions. | actually got a phone call about this today where somebody asked me if we put
this bid out and now we need 1,468 additional castings over what the original bid is that correct?

Mayor Donchess
You should introduce yourself for the record.
Mandeep Gill, Senior Staff Engineer
My name is Mandeep Gill and | am a Senior Staff Engineer in the engineering department in the DPW office. |
work with Steve Dookran and | was the one when we first put our bid out we did estimate a number of castings,
manholes, catch basins, but unless you open them you don’t know what is damaged and while they are trying
to dismantle during milling or re-cleaning operation, they do find a lot of these have been damaged so they can
be replaced. So that’s why we are ordering extra right now.
Alderman Klee
Thank you for the clarification. Thank you.
Mayor Donchess
Any other questions or comments?
MOTION CARRIED
From: Dan Kooken, Purchasing Manager
Re: Purchase of Rectangular Rapid Flashing Beacon (RRFB) Crosswalk Signal System on Main
Street Bridge (Value: $14,700)
MOTION BY ALDERWOMAN KELLY TO ACCEPT, PLACE ON FILE AND APPROVE THE PURCHASE

FROM OCEAN STATE SIGNAL COMPANY IN THE AMOUNT OF $14,700. SOURCE OF FUNDING IS
DEPARTMENT 160, ADMINISTRATION/ENGINEERING; TRUST FUND; 61, SUPPLIES AND MATERIALS

Mayor Donchess

Questions or comments?

Finance Committee - 8/1/2018 Page 4
Alderman Caron

Thank you, so this is replacing the bottom flashing lights, are we having issues, because it is not very old.

Mayor Donchess

Well those don’t really work and they have been deactivated because of that. Apparently we weren’t involved
in that decision but apparently the thought was that this would work and there is a set of these in Keene where
it does work but the set in Keene is on a smaller street that doesn’t get the traffic or the plow activity that Main
Street does. So the plows tend to knock these out of service and then they haven’t been reliable for quite a
while and they were deactivated.

So it is the thinking of Public Works that the mid-block crossing on the bridge is not safe enough and there
should be more warning for oncoming drivers. So this would be an above-ground, this is not on the street, this
is an above-ground flashing light which can be activated by a pedestrian to get a driver’s attention when they
cross at night or in the day.

Alderman Caron

So we tried it and it doesn’t work so we need to do something, because it is a very busy area. Thank you.
Mayor Donchess

This will be similar to what you have down near Rivier.

Alderman Caron

Ok and that works very well, thank you.

Alderman Klee

Sorry for every question but | can tell you that | was one of those people that were getting a lot of phone calls
for near-misses because of nothing being there. And then we did put up a daytime green yellow light, | mean a
sign which helps but to have something that is activated, especially with the traffic, so I’m glad to see this go
through.

Alderman O’Brien

Thank you. | know we are talking about one specific location here, but | would like to note that if this is a
hardier system, which | think it will be because it is not going to be affected by the weather and the plows and
everything, there are other crosswalks on Main Street. It always seems to me at times to be what | would call
like the passing lane and somebody is coming from your left and they are crossing and they make the island,
but they don’t see what is coming at them on the far right hand lane.

If this is a hardier system, if it is economical and works out in time, | would encourage my point of view is to
encourage maybe looking at them all and increase the safety of our pedestrians on Main Street; just my
opinion, thank you.

Mayor Donchess

Any other discussion?

MOTION CARRIED