Search

THE CITY OF NASHUA “The Gate City’

Finanetal Services

Purchasing Department

September 28, 2017
Memo #18-039

TO: MAYOR DONCHESS
FINANCE COMMITTEE

SUBJECT: FY18 WINTER ROAD SALT (VALUE: $465,000)
DEPARTMENT: 161 STREETS; FUND: GENERAL

Please see the attached communication from Jonathan Ibarra, Superintendent Street Department dated
September 28, 2017 for the information related to this purchase.

Pursuant to § 5-78 Major purchases (greater than $10,000) 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 Superintendent Street Department, Board of Public Works (September 28, 2017 meeting), and the
Purchasing Department recommend the award of this purchase in equal amounts of $232,500 each to
Granite State Minerals Inc. of Portsmouth, NH and Eastern Minerals, Inc. of Lowell, MA for a
combined total of $465,000.

Purchasing Manager

Ce: J lbarra L Fauteux

t

1229 Main Street e Nashua, New Hampshire 03061 © Phone (603) 589-3330 e Fax (603) 589-3344 |

i

To:

From:

Re:

A. Motion:

Attachment:

Discussion:

City of Nashua, Public Works Division

Board of Public Works Meeting Date: September 28, 2017

Jonathan Ibarra, Superintendent
Street Department

Winter Road Salt

To approve the purchase of winter road salt from Granite State Minerals of
Portsmouth, NH and Eastern Minerals, Inc. of Chelsea, MA for a total amount of
$465,000. The budgeted amount will be divided evenly between the two vendors.
Funding will be through Department: 161 Streets; Fund: General; Account
Classification: 61 Supplies and Materials.

State of NH Notice of Contract for Salt
Quotes from Granite State Minerals and Eastern Minerals

Both Granite State Minerals and Eastern Minerals have met the State of NH bid
price of $54.00 per ton. The city budgeted for a total of 8,611 tons or a budgeted
value of $465,000.

The City of Nashua has used Granite State Mineral and Eastern Minerals Inc. as
vendors for many years.

The superintendent recommends we continue to do business with Granite State
Minerals. Other prices for salt are as follows:

American Rock Salt Co., LLC $70.58 per ton
Champion Salt, LLC $58.15 per ton

Morton Salt, Inc. $74.23 per ton

STATE OF NEW HAMPSHIRE
BUREAU OF PURCHASE AND PROPERTY
STATE HOUSE ANNEX
25 CAPHOL STREET

CONCORD, NEW HAMPSHIRE 03301
DATE: 7/26/2041

NOTICE OF CONTRACT

COMMODITY: ROAD SALT - ROCK SALT & SOLAR SALT

CONTRACT NUMBER: 8002193

NIGP CODE: 775-4573

CONTRACTOR: GRANITE STATE MINERALS INC. VDR# 154316

227 MARKET STREET
PORTSMOUTH, NH 03801

TELEPHONE NO.: 888-846-9177
FAX NO. 976-251-8244
CONTACT PERSON/ e-mail: Jason Archambault

jarchambault@easternsaltcom
VENDOR TEST RESULTS E-MAIL: jarchambault@easternsalt.com

CONTRACT PERIOD: 8/01/2017 THROUGH 7/31/2018
TERMS: NET 30 DAYS
F.0.B.: DESTINATION
ORDERING: ORDERS SHALL BE PLACED DIRECTLY TO VENDOR.

INITIAL DELIVERY:
Contractor will be provided wilh a wnilon notification regarding the lype of and quantily sall that each DISTRICT will

purchase within fifteen (15) business days from award notification Please reference initial fill quantitins as stated in

Requirements by Dsinct section
Eligible Participant and other state agancins will establish their awn notification schedule ind farmat

DELIVERY - SCHEDULE FOR BALANCE OF SEASON REQUIREMENTS

Stale agency location contacts, Eligible Participants location contacts as well as NHDOT Disinct Engineers. or ther designated
agents, shall be respor able for placing additonal orders for any disticl location dunng ihe remainder of the contract period.
Contractor shall bc: respongble for providing the location contact / dista..t engineer with a weekly delvery schedule. Said
schedule shail be sent no later than Wednesday of the week precedinn -cheduled deivenrs

Rock salt

Orders shall be delivered within NINE (8) calendar days after notification to contractor. Requested delivencs shell nol be required

to excecd 3.000 tons per weak per disinet

Solar Salt
Orders shall be delivered within TWENTY ONE (21) business days after notification to contractor, Requesied delivenesthail not ba

required to exceed 3,000 tors per week per district

PRICING:

Highway District Rock Sait/ton solar Saititon
Hwy Distinct 3 $58.85/10n NA

Hwy Distict 4 §61.47/ton $6 1.47/ton
dHwy Distinct §/Central Turnpikes $§4.00/10n $04.00/ton
Hwy District 6/Eastern Turn pikes $53 30/ton $53.30/ion
QUESTIONS: Laura Ingram, Purchasing Agent

Tel: 603 271-2009; Email: laura.ingram@nh.gov

2017-18 ICE CONTROL SALT QUOTATION
CITIES/TOWNS OF NEW HAMPSHIRE IN DISTRICT 5

Based on the awarded NH Department of Transportation contract #8002193, Granite State
Minerals is pleased to extend the delivered price of $54.00 per ton of bulk road salt for the 2017-
2018 season. This price will remain firm until July 31, 2018. For inventory planning purposes,

we would appreciate if you return a completed and signed copy of this form via mail, fax 603-

436-2458, or email jharrington@gsmsalt.com by September 30, 2017.

Orders may be placed 24 hours a day by calling 603-436-8505, via email, or by faxing 603-436-
2458. Please note my contact information below for order and delivery questions. Billing
inquiries should be directed to Amy McLaughlin. Amy's email address is
amclaughlin@gsmsalt.com. Our physical mailing address is 227 Market St., Portsmouth, NH
03801. Payment terms are Net 30 days from invoice date.

Please call with any questions. We look forward to working with you this season and greatly
appreciate your business!

Kind regards,

Janet

Janet Harrington

Granite State Minerals, Inc.
(P)603-436-8505 (F)603-436-2458
jharrington@gsmsalt.com

Customer Info:

Town:

Ship To Address:

Contact/Phone/Fax:

Signature Estimated Usage

\
oN PLANT:
es 37 MARGINAL STREET
CHELSEA, MA 02150
TELEPHONE: (617) 884-0027

OFFICE:

134 MIDDLE STREET, SUITE 210
LOWELL, MA 08152
TELEPHONE: (978) 458-6420
FAX: (978) 251-8244

:
HER RLS, i oo

August 18, 2017

Jon Ibarra, Supt. Of Streets
City of Nashua

Division of Public Works
9 Riverside Street

Nashua, NH 03062

Dear Mr. Ibarra:
The following quote on Buik Road Sait is offered for your consideration.

Delivery of Bulk Salt: minimum truckloads of 25 to 30 tons delivered to the City of Nashua,
NH at: $54.00 per ton.

To arrange for delivery call our salt terminal in Chelsea, Massachusetts:
1-800-331-0131 OR 1-617-884-0027

Payment terms are Net 30 days.

Prices quoted will remain firm until June 30, 2018, if accepted and acknowledged within 30
days. We would also ask you to provide an estimate of the tonnage you may order to help us
plan our inventory accordingly. Please sign and fax back to 978-251-8244 at vour earliest
convenience.

Omas F, ae

Sales Representative

Estimated Tonnage:
Accepted by: Date:
Jon Ibarra
Supt of Streets

THE CITY OF NASHUA “The Cate City"

Financial Services

Purchasing Department

September 28, 2017

TO: MAYOR DONCHESS
FINANCE COMMITTEE

FROM: DAN KOOKEN, PURCHASING MANAGER

SUBJECT: COMMUNICATION - RETIREE DRUG SUBSIDY “REOPENING’ PLAN YEARS 2012
AND 2013

Please see the attached communication from Larry Budreau, Human Resources Director, dated

September 25, 2017 for information related to this request for contract approval.

Also attached are the Service Agreement to Review and Reopen Medicare Part D Subsidy Services and
(Attachment B) Business Associate Agreement pertaining to this contract.

Resp

ctfully,

/Dan Kooken
Purchasing Manager

Ce: L Budreau J Griffin

229 Main Street ¢ Nashua, New Hampshire 03061 e Phone (603) 589-3330 e Fax (603) 589-3344

City of Nashua

Human Resources Department

229 Main Street - Nashua, NH 03060 (603) 589-3230
Fax (603) 589-3244

MEMORANDUM
To: Dan Kooken, Purchasing Manager
From: Larry Budreau, Human Resources Director

Subject: Part D Advisors — Service Agreement

Date: September 25, 2017

The Centers for Medicare & Medicaid Services (CMS), through the Retiree Drug Subsidy Program,
reimburse health plan sponsors for a portion of retiree prescription claims.

Part D Advisors (PDA), on a contingency fee basis, will audit the City’s original 2012 and 2013
subsidy awards and likely find that the City is eligible for additional reimbursement beyond the
$773,000 previously awarded.

This agreement is risk free as the City will only be invoiced if it receives additional subsidy from
CMS. That is, the City will retain 80% of the reimbursement and pay PDA 20%.

PDA is highly regarded and recommended by Workplace Benefit Solutions (WBS) / HUB
International, the City’s insurance broker / consultant. To their knowledge, the contingency fee of
20% is the lowest available. Another proposal received by the City was for 25%.

| have attached the Service Agreement and Business Associates Agreement. The Business
Associates Agreement concerns privacy rights as this is a matter governed by HIPPA, the federal
heaith providers’ privacy legislation. | have also attached PDA’s proposal.

| will attend the October 4, 2017 Finance Committee meeting.

Thank you,

larry

SERVICE AGREEMENT TO
REVIEW AND REOPEN
MEDICARE PART D SUBSIDY SERVICES

This AGREEMENT FOR MEDICARE PART D SUBSIDY SERVICES (this “Agreement” is
entered into by and between Part D Advisors, Inc., a Michigan corporation (hereinafter referred to as
“PDA”) and the City of Nashua (hereinafter referred to as “Plan Sponsor’) on behalf of itself and
the City of Nashua Health Plan (hereinafter referred to as the “Plan’”) and shall be effective as of

April 7.2017 (the “Effective Date”).

RECITALS

WHEREAS, Plan Sponsor maintains a group health program (hereinafter referred to as the “Plan”),
under which eligible individuals, including Retired Medicare Eligible Individuals, are able to obtain
certain prescription drug benefits; and

WHEREAS, the Plan Sponsor has filed one or more Subsidy Applications for the Plan with the
Center for Medicare and Medicaid Services (“CMS”) with respect to the Medicare Part D
Prescription Drug Program (the “Part D Program’) to receive the Medicare Drug Subsidy provided
for in the Medicare Modernization Act of 2003 and as more fully described in 42 CFR 423.880
through 888 (“Medicare Drug Subsidy”);

WHEREAS, the Plan Sponsor has one or more Subsidy Application for Reconciled Plan Year(s).

WHEREAS, Plan Sponsor wishes to engage PDA to assist Plan Sponsor with the requirements and
opportunities for Reopening the Reconciled Plan Year(s) and PDA desires to provide such
assistance, subject to the terms and conditions as set forth herein;

WHEREAS, Plan Sponsor (or its designee(s) other than PDA) shall serve as the administrator,
fiduciary and primary decision maker for the Plan, with all of the rights and responsibilities for
administering the Plan in connection with the Part D Program, and PDA shall have no such authority
or responsibility except as may be specifically provided herein.

NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained,
the parties agree as follows:

SECTION 1
DEFINITIONS

1.01 “Medicare Eligible Individuals” shall mean a Member who has the right to elect to get

coverage under Medicare Part D, whether or not they have so elected. The determination of
whether a Member is a Medicare Eligible Individual shall be made monthly by CMS.

City of Nashua 1 SA Revised March 2016

1.02

1.03

1.04

1.05

1.06

1.07

1.08

1.09

2.01

“Einal Reconciliation” shall mean the last payment request filing made by a Plan Sponsor
with respect to a Subsidy Application, as required by 42 CFR §423.888(b)(4).

“Member” shall mean an individual enrolled for prescription drug coverage under the Plan,
including an individual continuing coverage in accordance with the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended (“COBRA”).

“Plan Document” shall mean generally the written description of the benefits provided by
the Plan, the terms and conditions under which the Plan is operated and the standards and
tules governing the payment of benefits under the Plan.

“Plan Year” shall mean the period of time specified on a Plan Sponsor’s Subsidy
Application with respect to which Medicare Subsidy Payments are calculated and paid to the
Plan Sponsor.

“Retired Medicare Eligible Individual” or “RMEI” shall mean a Medicare Eligible

Individual who has retired.

“Subsidy Application” shall mean a Plan Sponsor’s request for Medicare Drug Subsidy
payments with respect to the Plan for a Plan Year, as permitted by 42 CFR §423.884(c)(1).

“Reconciled Plan Year(s)” shall mean any Subsidy Application for which Final

Reconciliation is completed before or during the effective term of this Agreement.

“Reopening” shall have the meaning provided in 42 CFR 423.890(d) with respect to a
Subsidy Application for a Reconciled Plan Year.

SECTION 2
PDA SERVICES

Specific PDA Services — Drug Subsidy. During the term of this Agreement, PDA shall
provide any or all of the following services as may be necessary to assist Plan Sponsor with
respect to Reopening Reconciled Plan years:

(a) General consultation regarding the Part D Program and assist in determining the
magnitude of potential Medicare Drug Subsidies as may be available to Plan
Sponsor;

(b) Assist in the identification of Retired Medicare Eligible Individuals who have not
elected drug coverage under Medicare Part D;

(c) Assist in obtaining, compiling and documenting detailed drug expenditure
information (including, by way of illustration only, the types of information listed in
Exhibit B attached hereto) from pharmacy benefit managers and other sources;

(d) Appoint a Medicare Drug Subsidy Account Manager for Plan Sponsor and Plan to
assist in the preparation and filing of a Reopening Request and, if granted, a new
Final Reconciliation with CMS for the Reconciled Plan Year and assist with follow-
up tasks as may be required by CMS, including cost reporting and payment requests
to CMS and Final Reconciliation; and

City of Nashua 2 SA Revised March 2016

(e) Assist in the design and establishment of a system for the proper retention of
relevant data as may be proper and necessary for compliance with the Part D
Program and any audits by CMS in connection with the Medicare Drug Subsidies
for the Reconciled Plan Year.

2.02 Specific PDA Services — Ongoing Services. During the term of this Agreement, PDA shall
provide the following ongoing services:

(a) Maintain and update a database containing the eligibility of each Retired Medicare
Eligible Individual for prescription drug coverage under the Plan and/or under the
Part D Program with respect to each Reconciled Plan Year;

(b) Maintain other appropriate records regarding the Plan in respect of the Part D
Program as may be required by federal law; and

(c) Assist Plan Sponsor with submission of, or access to, the records in PDA’s database
as may be required for CMS regulatory, audit, and/or other business purposes.

2.03 Sources of Information. In performance of the above-described services, PDA shall rely on
any communication and/or data reasonably believed by it to be genuine, including necessary
information received from Plan Sponsor, Members, providers, and any other source in a
timely manner and in good order. For purposes hereof, “timely manner” means a reasonable
period of time as may be necessary for sorting, processing, analyzing, entering and/or
posting of information received.

SECTION 3
RESPONSIBILITIES OF PLAN SPONSOR

3.01 Preparation and Provision of Eligibility List and Plan Information. Plan Sponsor shall:

(a) Prepare a complete and accurate set of enrollment records for all Members under the
Plan during the Reconciled Plan Year including actual retirement dates. Such
records shall be delivered to PDA in an electronic format acceptable to PDA as soon
as practicable following the Effective Date. Thereafter, Plan Sponsor shall promptly
update such enrollment records in an electronic format acceptable to PDA, notifying
PDA of any and all changes in Member status and the accurate date of such change,
including the addition of new Members, retirement, termination or layoff of a
Member, changes in dependent status or any other changes that may affect the
eligibility of a Member;

(b) Make available, or cause to be made available to PDA, certain reports and
information to which Plan Sponsor has access and which may be reasonably
requested by PDA. Such reports and information may include, but shall not be
limited to: (1) certification that a Member was eligible for benefits under the Plan;
(ii) a description and identification of the types of drug benefits to which a Member
was entitled; (iii) date of a Member’s eligibility; and (iv) date of a Member’s
ineligibility. Upon request, Plan Sponsor shall provide PDA with any other
reasonable and necessary information regarding Members;

City of Nashua 3 SA Revised March 2016