Search

Finance Committee - 05/21/2020 Page 2

Members not in Attendance: Mayor Jim Donchess
Alderman-at-Large Brandon Laws

Also in Attendance: John Griffin, CFO/Comptroller
Dan Kooken, Purchasing Manager
Kim Kleiner, Administrative Services Director

Vice-Chairman Klee

Here. | am alone in this room, but in close proximity is my husband my two greyhounds. | am attending this
call virtually by the Governor's order.

Alderwoman Lu
| am present, | am alone and | can hear you, thank you.

Alderman Harriott-Gathright

And the Clerk, | am present, I’m alone and | am safe distancing.

Alderwoman Kelly

| am here, | can hear everybody, my 9-month-old is here in the room with me but he’s not advising me in any
way, shape, or form. | am practicing social distancing.

Alderman O’Brien
| am present, | am alone, and | can hear the proceedings, thank you.

Alderman Harriott-Gathright

Ok, also in attendance is John Griffin, our CFO; Dan Kooken, Purchasing Manager and Kim Kleiner,
Administrative Services Director. | also had listed Dave Fredette is he here?

John Griffin, CFO

No, Mr. Fredette is not here.

Alderman Harriott-Gathright

Ok, thank you.

John Griffin, CFO

Thank you.

Alderman Harriott-Gathright

Did | miss anyone else?
Vice- Chairman Klee

Thank you, Madam Clerk. Communications from Dan Kooken, Purchasing Manager.

Finance Committee - 05/21/2020 Page 3

COMMUNICATIONS

From: Dan Kooken, Purchasing Manager
Re: 14 Court Street Fire Suppression System, Change Orders #1 and #2 on PO #154024

MOTION BY ALDERMAN HARRIOTT-GATHRIGHT TO ACCEPT, PLACE ON FILE, AND AUTHORIZE
CHANGE ORDER #1 IN THE AMOUNT OF $15,290 AND CHANGE ORDER #2 IN THE AMOUNT OF
$13,283 FOR A TOTAL AMOUNT OF $28,573 FOR 14 COURT STREET FIRE SUPPRESSION SYSTEM
FROM NORTHPOINT CONSTRUCTION, BY ROLL CALL

ON THE QUESTION

Vice-Chairman Klee

Mr. Kooken, did you want to talk to this? | think you might be muted.

Alderman Harriott-Gathright

It doesn’t look he’s muted.
Vice-Chairman Klee
It looks like we may have lost him, I’m not sure.

Kim Kleiner, Director of Administrative Services

Alderwoman Klee, | can speak to it.
Vice-Chairman Klee
Thank you, Director Kleiner, | appreciate that.

Kim Kleiner, Director of Administrative Services

So on Change Order #1 for $15,290.00 what was found was the existing devices in Liquid Therapy and the
Artist Space are not compatible with the required fire alarm panel that we are installing. The devices in those
areas will need to be replaced as part of this project. The original bid package did not include replacing those
devices so that is the change within the price.

Vice-Chairman Klee

Thank you very much. Are there any questions?

Alderwoman Lu

Yes, | have a question.

Vice-Chairman Klee

Alderwoman Lu?

Finance Committee - 05/21/2020 Page 4
Alderwoman Lu

Thank you. In Mr. Kooken’s Memo or (inaudible) details are attached. Did we not get something that was
meant to be attached?

Kim Kleiner, Director of Administrative Services

Alderwoman Lu, | can’t speak to why he said that, so | received an update from the contractor. | am not aware
that Mr. Kooken had the details that | have here. | can go on, since it’s all in one Memo, Change Order #2 for
$13,282.50 — that is because originally the existing wet and dry systems in the attic were not part of the scope
of work. The Fire Marshall asked that we check the sprinklers just to make sure there were no deficiencies in
these systems. What we did find was that the sprinkler heads will need to be replaced in about 2 and % years
and the compressor for the dry system is at its near end of life. It is almost 30 plus years old so we looked at
having the contractor perform this work since the building is unoccupied. The contractor is already on site; it
minimizes any future disruption when the building becomes occupied. So that's the second change order.

Alderwoman Lu
Thank you. Just what is the project, when did it begin? This project on Court Street?

Kim Kleiner, Director of Administrative Services

It did. So we began this project shortly after City Hall closed, shortly after the 15" of March.
Alderwoman Lu

Thank you. Alderman Klee.

(Audio distortion)

Unidentified Speaker

We can’t hear you.

Vice-Chairman Klee

| was muted, | apologize for that. Alderwoman Kelly and then Alderman O’Brien.

Alderwoman Kelly

Thank you. | just wanted to for reference for Alderwoman Lu, this project has been something that we have
been talking about for awhile and | think the most striking piece that came up was the Fire Chief saying that the
Court Street Building is the one that keeps him up at night. He said it, that’s exactly what he said on the
record. So | was very happy to have it done and I'll support these change orders. Sorry it’s late.

Vice-Chairman Klee

Alderman O’Brien?

Alderman O’Brien

Thank you. When | was a Deputy Chief, | had other buildings | worried about, you know? But Court Street is
near and dear to the City, it’s one of the oldest, it was a Fire Station. It was reconfigured into our original

Performing Arts Center. And yet the City of Nashua leads the way, we demand of the public to have fire
protection and that goes into residential and commercial properties. We should be the leader of that in our

Finance Committee - 05/21/2020 Page 5

own building to make sure that our sprinkler systems are up to par. From what Kim Kleiner said with the air
compressor, we actually called it in the fire service a (inaudible) and that keeps the dry system dry. When the
dry system is no longer dry, the reason it is dry is because it is an area that will freeze. When the dry system is
no longer dry then you are paying a lot more money on broken pipes and damages and everything else. So
this is very much money well spent for fire protection and for the integrity of the building. | support this, thank
you.

Vice-Chairman Klee

Thank you, Alderman O’Brien. Ms. Kleiner, | just want to reiterate something that you said or just ask you, by
doing this now versus waiting for the 2 years or 2 % years when everything is going to need to be done again,
we would then disrupt the current occupants at that time, as well as possibly costing us even more money in
the end. And as Alderman O’Brien pointed out, if we don’t take care of this, we have the potential of other
issues going on. Is that correct?

Kim Kleiner, Director of Administrative Services

That is correct. So we would be concerned, just as Alderman O’Brien stated, that the dry system did not
remain dry which could cause several problems. But also because of if there’s any happy side to this, when
we closed City Hall, we also closed Court Street to the tenants, so it’s empty right now. We got the contractors
in there and we asked them to really work on this project while no one was in the building. They’ve been able
to do so; in fact we expect that it will be near completion next week which has really helped both the
contractors and any potential disruption to any programs which wouldn’t be the case most likely in two years.

Vice-Chairman Klee

Thank you very much. Sorry, Alderman O’Brien.

Alderman O’Brien

Yeah and please indulge me. You are in my level of expertise go figure. But anyways this is part of the normal
procedure. Sprinkler heads do have a life expectancy and they need to be changed. | can’t really, now you’ve
got me going back to the NFPA Books, | thought! retired. But they do need to be changed; if you don’t change
them then you can get what’s called in the business a “cold flow’ in other words the sprinkler head lets down
and again it is saving the taxpayer’s money to have a properly maintained, and may | give my usual PR for the
sprinkler system. There’s been about a 96 — there’s never been a loss of life in a properly operated sprinkler
system, a building that has been properly operated. So it goes a long way.

Vice-Chairman Klee

Nice to hear. Are there any other questions? Madam Clerk, could you please call the roll?

A viva voce roll call was taken which resulted as follows:

Yea: Alderman Klee, Alderwoman Lu, Alderman Harriott-Gathright, Alderwoman Kelly,
Alderman O’Brien 5

Nay: 0
MOTION CARRIED
Alderwoman Lu

| have a quick question.

Finance Committee - 05/21/2020 Page 6

Vice-Chairman Klee

Sure, Alderman Lu?

Alderwoman Lu

Alderman O’Brien, why don’t | see him on my Finance Committee roster?

Alderman O’Brien

I’m on the Finance Committee.

Alderwoman Lu

| never thought you were. Thank you. | don’t know.

Alderman O’Brien

| can go if you want.

Vice-Chairman Klee

Oh no you don’t.

Alderwoman Lu

| just wondered.

Alderman O’Brien

Alderman Lu it is a late night.

Vice-Chairman Klee

Madam Clerk if you could continue? Thank you.

From: Dan Kooken, Purchasing Manager

Re: Contract for Two Year External Audit Contract with Melanson Heath (Value: $122,500) Department:
126 Financial Services; Funds: Professional and Technical Services $89,900; Department: 168 Solid
Waste; Funds: Professional and Technical Services $13,000; Department 169 Wastewater; Funds:
Professional and Technical Services $19,600

MOTION BY ALDERMAN HARRIOTT-GATHRIGHT TO ACCEPT, PLACE ON FILE, AND AUTHORIZE THE

TWO-YEAR EXTERNAL AUDIT CONTRACT WITH MELANSON HEATH IN THE AMOUNT OF $122,500.

FUNDS ARE AVAILABLE IN DEPARTMENT 126 FINANCIAL SERVICES; FUNDS: PROFESSIONAL AND

TECHNICAL SERVICES $89,900; DEPARTMENT: 168 SOLID WASTE; FUNDS: PROFESSIONAL AND

TECHNICAL SERVICES $13,000; DEPARTMENT 169 WASTEWATER; FUNDS: PROFESSIONAL AND

TECHNICAL SERVICES $19,600 BY ROLL CALL

ON THE QUESTION

Vice-Chairman Klee

Director Kleiner, would you speak to this or would it be Mr. Griffin or Mr. Kooken.

AMENDED
R-16-050

RESOLUTION

AUTHORIZING THE SALE OF SURPLUS BROAD STREET PARKWAY PROPERTY

CITY OF NASHUA

In the Year Two Thousand and Sixteen
Archive retrieval
WHEREAS, property was acquired for the Broad Street Parkway;

WHEREAS, some properties or portions thereof are not needed for the alignment as
constructed and they should be declared surplus properties and disposed of by the city;

WHEREAS, the properties or portions thereof are identified as follows:

44 Broad Street (Sheet 71, Lot 2)
73-75 Broad Street (Sheet 133, Lot 33)
11 Baldwin Street (Sheet 62, Lot 233)

WHEREAS, the properties were obtained using federal funds and thus the revenue
realized from the sale of eligible properties must be used on the Broad Street Parkway project.
All properties listed above are eligible.

WHEREAS, the following property, the “Boiler House” lot, was obtained by tax deed by
the City of Nashua on April 25, 1991, Hillsborough Country Registry of Deeds Book 5250,
Pages 1889 and a portion of it was used for the Broad Street Parkway, leaving two lots;

2 Pine Street Ext. (Sheet 77, Lot 28)
L Pine Street (Sheet 77, Lot 42)

WHEREAS, the Board of Aldermen has determined that the reminders of the Boiler
House lot as described above should not be retained for public use.

NOW, THEREFORE, BE IT RESOLVED by the Board of Aldermen of the City of
Nashua that all the above referenced parcels or portions thereof as determined by the final layout
are surplus properties and shall be sold in accordance with NRO Section 5-116 (relative to tax
deeded property), state law and federal law where applicable.

The Mayor, with the assistance of the Office of Corporation Counsel, is authorized to
prepare and execute all necessary documents.

15.

16.

17.

18.

19.

shall, within twenty (20) days of that determination, notify the breaching Party and the breaching
Party shall have thirty (30) days from receipt of that notice to cure the breach or end the violation.
If the breaching Party fails to take reasonable steps to effect such a cure within such a time period,
the non-breaching Party may terminate all or part of the service relationship. In no event shall such
termination have any effect on sums due from Covered Entity for any services provided by Sapphire
Digital under the engagement.

b. Where either Party has knowledge of a material breach by the other Party, and cure is not possible,
the non-breaching Party shall terminate the portion of the arrangement for Services affected by the
breach.

Effect of Termination. Upon the event of termination of this Addendum, Sapphire Digital agrees, where

feasible, to return or destroy the PHI, which Sapphire Digital still maintains in any form. Prior to doing
so, Sapphire Digital further agrees, to the extent feasible, to request the destruction of the PHI that is in
the possession of its subcontractors or agents. If in Sapphire Digital’s opinion, it is not feasible for
Sapphire Digital or any subcontractors to return or destroy portions of the PHI, Sapphire Digital shall,
upon Covered Entity’s written request, inform Covered Entity as to the specific reasons that make such
return or destruction infeasible and limit any further use or disclosures to the purposes that make the
return or destruction of those portions of the PHI infeasible and provide the protections described herein
to that PHI.

Third Party Beneficiaries. Nothing in this Addendum shall be construed to create any third party
beneficiary rights in any person.

Counterparts. This Addendum may be executed in any number of counterparts, cach of which shall be
deemed an original. Facsimile and pdf copies thereof shall be deemed to be originals.

Informal Resolution. If any controversy, dispute or claim arises between the Parties with respect to this
Addendum, the Parties shall make good faith efforts to resolve such matters informally.

Interpretation. The provisions of this Addendum shall prevail over any provisions in any other
agreements between Sapphire Digital and Covered Entity that may conflict or appear inconsistent with
any provision of this Addendum. This Addendum shall be interpreted as broadly as necessary to
implement and comply with HIPAA and the HITECH Act. The Parties agree that any ambiguity in this
Addendum shall be resolved in favor of a meaning that complies with and is consistent with HIPAA
and the HITECH Act.

13

Finance Committee - 05/21/2020 Page 7

John Griffin, CFO

This would, Madam Chairman, this would be Mr. Griffin, CFO for the City.
Vice-Chairman Klee
Thank you, please go ahead Mr. Griffin.

John Griffin, CFO

By way of background | provided a Memo to Finance Chair Mayor James Donchess. Hopefully, that was
communicated to you folks as well. My recommendation is to keep the incumbent, Melanson Heath which has
an office locally in Nashua. They do a great job. They know our systems, Lawson, Munis being admins.
They’ve been auditing us for several years. What they do is, from time to time, they change principal, with the
principal on the engagement hours as they employed (inaudible). The audit culminates in the comprehensive
annual financial report, which you may recall when we reviewed it last year. We will set up a meeting going
forward. This year, it has been difficult with the remote meetings and so forth so they will need to get in to talk
to us on that. And on the Finance Committee Meeting, the $122,500.00 is the amount for this year and as you
mentioned in the reading of the request, not only do they do the General Fund Audit, but they also audit the
Solid Waste and Wastewater. So that’s a good deal for us.

On their end, they help us with the financial statements included in the CAFR, Comprehensive Annual
Financial Report. So we think it is a good amount, reasonable amount for the City. It is roughly 2 %2% over last
year. And the following year is around 2%, $125,000.00, it is in the Memo. So with your votes tonight you will
enable us to retain Melanson Heath and start working on the audit for this Fiscal Year, Fiscal 2020. If you
have any questions, Il’d be happy to answer them. Thank you.

Vice-Chairman Klee

Thank you, Mr. Griffin. Are there any questions?

Alderwoman Lu

| do have a question.

Vice-Chairman Klee

Go ahead Alderwoman Lu.

Alderwoman Lu

Thank you. Did any of the Committee receive the Memo to Mayor Donchess?

Vice-Chairman Klee

It was not attached to the Agenda that | could see, other than the original letter that requested this from Mr.
Kooken. We did not get that letter. Alderwoman Lu, do you have any specific that you feel that you need to
ask?

Alderwoman Lu

Well, | wanted to ask (inaudible) but | also wonder if, | think pursuant to 5883 this type of financial service

would be accompanied with a couple of things from the Purchasing Manager such as a description of the work
to be performed and the hourly rates not to exceed contract price and any exceptions to this solicitation. | think

Finance Committee - 05/21/2020 Page 8

things like that are usually part of the packet. This packet tonight seems very sparse and | don’t have a lot of
sense of, you know, | Know there aren’t bids required for this particular contract. But that is my comment.

Vice-Chairman Klee
And | cannot disagree with you, Alderwoman Lu. Usually our packet is much bigger. | don’t know what
happened, if we have seemed to have lost it. | went in and double-checked on the Agenda also to see if there

was something that was missing.

John Griffin, CFO

Madam Chair, if | may, included in the submittal for tonight’s review was the actual contract. Do you have the
contract?

Vice-Chairman Klee
No we don’t have it.

John Griffin, CFO

So what | could do is send you Committee Members the Memo that | just described to the Mayor and then |
would also send you the contract. The contract is very similar to ones that have been approved in the past and
that has all of the representations. It’s a multi-page document and it would have all the representations of the
services being provided. It culminates in a final rate. | could send that to you and the Committee Members. |
can’t do it tonight. I’ll certainly do it tomorrow morning early. The reason why we actually put this on the
Agenda with respect is so we can start scheduling the pre-audit work which is really important. It keeps down
the expense. The Melanson Heath Team usually try to pre-audit before close (inaudible) other things before
they get into the heavy audit, which usually takes place in August and October. So that’s why we didn’t
postpone this particular one until the next month’s meeting.

Vice-Chairman Klee
Before we go any further | am going to ask the members with that lack of information, so what if we weren't to
act on this today, and they weren’t able to do the audit, what would be the additional cost to this contract. |

think we need to know that before we act in any way.

John Griffin, CFO

It’s more of a time — they are not going to change the cost of the contract. It’s just that the senior accounting
manager, she schedules them and they fit everything in, in a timely fashion. Their fee for service, they have
people allocated, they don’t want to come in if they don’t have a bonafide agreement. So they are waiting for
this to have them work on our audit, the pre-audit side of it within the next few weeks.

Vice-Chairman Klee

And | appreciate that. | am going to take the question from Alderwoman Harriott-Gathright and then go back to
Alderwoman Lu.

Alderman Harriott-Gathright

Ok you spoke of a Memo, was it the Memo 20-105?

Finance Committee - 05/21/2020 Page 9

John Griffin, CFO

My particular Memo, Alderwoman Gathright, was dated to the Mayor, May 12". To Mayor Donchess, from
John Griffin and Rosemarie Evens, May 12 recommendation to extend Melanson Heath and Company
contract. This contract is its 2 years, we will also require next Tuesday Board of Aldermen approval. So |
would definitely go forward post-haste to get you this Memo as well as the actual contract.

Alderman Harriott-Gathright

Alright, thank you.
Vice-Chairman Klee

So just so that | can clarify this to the rest of the members, when we approve or disapprove this, we have
another vote that happens at the Board of Aldermen on Tuesday. Correct me if | am wrong, Mr. Griffin. And if
we do pass this here with a recommendation, then the Board of Aldermen makes the final decision and we
have the Memo and we will make sure that all of the Board of Aldermen get that Memo. | don’t know what
happened, probably because we have been trying to rush things with COVID, something got slipped through
the crack. Am | correct on that?

John Griffin, CFO

Madam Chair, John Griffin, CFO — that would be much appreciated and in a Communication, | had ce’d Ms.
Graham and Mr. Kooken. Mr. Kooken has every intention of providing the Memo to the Full Board of Aldermen
and we can make sure we can attach these two documents. That may work as well. It usually comes in to
your folks as a Communication.

Vice-Chairman Klee

Thank you very much. | think | would like to keep going forward. But Alderwoman Lu, | would like to hear from
you. You are muted.

Alderwoman Lu

| am just wondering; | feel as though there is so much missing in this paperwork and would it be OK if |
abstained from this vote?

Vice-Chairman Klee

Well you can vote “no” if that’s how you feel? | am going to be honest with you. | don’t know if we can do an
“abstain”. | know on the State side, | know we can't abstain if we are there. | don’t believe you can hear, but
you know. Feel free to vote “no” if that’s how you feel.

Alderwoman Lu

Thank you.

Vice-Chairman Klee

And Alderman O’Brien did you have a question?

Alderman O’Brien

No | did not but | do agree with the no abstention.