Committee Report - Finance - 8-9-12 — File 193580

August 9, 2012 Finance Committee Page 1 of 3 Printed 8/14/2012 REPORT OF THE FINANCE COMMITTEE Attendee Name Title Status Arrived Maryann M. Heuston Chair Present William A. White Jr. Vice Chair Present John M Connolly Alderman At Large Present Robert C. Trane Ward Seven Alderman Absent Thomas F. Taylor Ward Three Alderman Absent Omar Boukili Admninistrative Assistant Present Ed Bean Finance Director Present Kevin Kelleher Chief Fire Engineer Present Dave Shapiro Asst. City Solicitor Present Doug Willardson Budget Analyst Present Steve MacEachern Supt. of Lines and Lights Present Steve Hadley Director, SomerStat Present 192694 - Requesting approval of a Purchase and Sales Agreement with NStar Electric, for the purchase of NStar-owned street lights.: Mr. Hedley stated that Somerville is able to purchase the street lights under a provision of Mass General Law. Presently, the city’s annual streetlight electricity use is 2.9 million kWh, billed at the current NSTAR rate of $.30/kWh. Once the city purchases these lights, the rate would drop to $.19/kWh. After budgeting for a contracted maintenance program and factoring in major repairs and lost tax revenue, it is estimated that the city would save $311,000 by purchasing the streetlights from NSTAR. The purchase would encompass 4,006 streetlights on 3,134 wood poles with other utilities, 84 wood poles no other utilities and 788 concrete or metal poles. The city would own the concrete poles while NSTAR would still own the double wooden poles, thereby not affecting the city’s current double pole issues. Since all of the 4,006 lights are fully depreciated, NSTAR would sell its streetlights and related equipment to the City in “as-is” condition for $1.00. The City would have the right to use, alter or replace the streetlight facilities as it deems appropriate and agrees to handle all routine maintenance through its vendor, and all major repairs either through the regular vendor or through a bid process. The one year renewable maintenance contract will provide for faster repairs and includes replacement of failed lamps (bulbs) and photocells, ballasts, starters, igniters, standard lenses and reflectors; general cleaning; trimming of branches; and quarterly night checks of all lights. This program has been successfully implemented in other cities and returned the following savings: Lynn: $561K/yr, New Bedford: $250K/yr, Woburn: $500K/yr and Chelsea: $48K/yr.

Committee Meeting August 9, 2012 Finance Committee Page 2 of 3 Printed 8/14/2012 The committee reviewed the proposed contract and requested additional information regarding NSTAR's obligation to maintain the light poles to which the streetlights are attached, relocation of poles, the city's option to purchase and restrictions on the placement of apparatus, etc., by NSTAR that might interfere with the city's uses. The committee also requested figures for the average costs of replacing cement and wood poles. RESULT: KEPT IN COMMITTEE 193216 - Requesting an appropriation of $1,125,000 and authorization to borrow that amount in a bond for a replacement Ladder Truck in the Fire Dept.: Chief Kelleher informed the members that the city's present tower ladder truck is a vintage 1994 and needs to be replaced due to corrosion on its undercarriage. The truck has been in service for 18 years, which is 3 years beyond the recommended service life. Mr. Bean stated that the funds for this purchase have been built into FY-12 capital plan. Alderman White requested that copy of the plan be emailed to him. RESULT: APPROVED 193281 - Requesting authorization to establish a Consolidated Gift Account for the Libraries.: Mr. Bean explained that the account would be used to accept gifts from the citizenry. The City Treasurer would accept the funds and place them in a consolidated gift account. The Library Director would then have discretion for the use of the funds and the Auditing Department would ensure sure that funds are used for allowed purposes. RESULT: APPROVED 193282 - Requesting authorization to establish a Consolidated Gift Account for the Library Teen Services programming.: Mr. Bean explained that the account would be used to accept gifts from the citizenry. The City Treasurer would accept the funds and place them in a consolidated gift account. The Library Director would then have discretion for the use of the funds and the Auditing Department would ensure sure that funds are used for allowed purposes. RESULT: APPROVED 193426 - Requesting the acceptance of a $272,327 FEMA Assistance to Firefighter Grant to install Opticom Pre-emption systems at 22 intersections citywide.:

Committee Meeting August 9, 2012 Finance Committee Page 3 of 3 Printed 8/14/2012 Chief Kelleher explained that the city would like to expand this system to east - west corridor runs on the city's main roads. The city would need to puts up a 20% match of approximately $54,000. Mr. Bean stated that the matching fund portion has been built into FY-12 capital plan. RESULT: APPROVED 193480 - Requesting an appropriation of $15,000 from the Capital Projects Stabilization Fund for the Somerville STEAM Academy.: RESULT: KEPT IN COMMITTEE 193481 - Requesting acceptance of a $22,000 grant from the MA Emergency Management Agency for Fire Dept. Emergency Management Preparedness.: RESULT: APPROVED