Chairman Glennon recognized Julie Glover to discuss paving of Main Street. Ms Glover noted in July Severino had requested $6,000 which represented a cost escalation for fuel and asphalt. She had forwarded it to Underwood Engineers who reviewed the request, the town’s contract and denied it, as there is no escalation clause within the contract. Recently the Town was notified by Severino through a letter from Pike Industries that they will not pave unless they obtain the full cost for the paving mix. Severino is looking for pproximately $50,000, which will cover the binder course for Main Street for the balance of the year. Asphalt cost currently is $94 per ton and we need 1,400 tons. The Town signed a contract cost of $57.94 a ton, therefore, the requested amount are funds over and above what was contractually agreed to.
Ms Glover noted the town has had an excellent working relationship with Severino and it is up to the Town Council to decide whether they wish to approve additional funding to cover the cost escalation.
Chairman Glennon asked what would be the case if we said no. Ms. Glover indicated that believed Severino would not default over $50,000, but could take this issue to an arbitor.
Councilor LaBranche inquired as to the cost the town is currently paying for asphalt for the work undertaken on the roads. Rick Malasky indicated $59 per ton is the contractual price with Bell & Flynn. He further indicated that there is 1380 tons left for projects. Mr. Malasky noted he inquired as to whether he could use the remaining portion for the downtown project and was told by Bell & Flynn that it could not be done.
Councilor LaBranche inquired whether there have been any discussions relative to a negotiated increase. Ms. Glover indicated that the town had offered a 1/3 increase of the cost to which Severino said it was not sufficient.
Councilor LaBranche inquired as to a 50/50 or a specific dollar amount. Ms. Glover indicated that there is enough money in contingency that could cover the cost however we still have the top coat for Exeter Street (400 tons), 1,200 tons for the remaining top coat, in addition we have 18 months on the contract overseeing FairPoint, PSNH and Comcast work. She further indicated that Underwood had been asked to discuss with the DOT District 6 the possiblity they would be willing to overlay the area, but at the present time, their budget is limited.
Councilor Ploski indicated that if we were to give into their request at this time, would we see other contractors asking for additional funds. He felt that the initial offer made was reasonable. Mr. Malasky indicated that $20,000 would keep a good relationship going.
Mr. Malasky noted that the relationship with Severino has been a good one. There have been numerous times where they have undertaken a specific project without arguing or requiring a change order. He felt that the relationship has been one where there have been trade offs made in order to keep the project moving. He sited several examples where pipes had been found or that ledge has been discovered and they have just proceeded to work through that issue without demanding any type of change order.
Chairman Glennon indicated that legally the Town has no obligation to pay anything. However, with the cost of everything going up he is not surprised that there has been a request for additional funds.
Councilor LaBranche inquired what kind of savings we will realized by not doing the table top? He felt that we needed to look at all areas to see where we could cut to insure a continued good working relationship with Severino.
Councilor Ploski suggested that we consider a 50/50 share with Severino relative to the cost.
Motion: To authorize Julie Glover to negotiate with Severino for the binder in the amount up to $25,152, and for the overlay in the bowl in the amount of $7,186.
Motioned: Councilor Ploski
Seconded: Councilor Carr
Vote: 7-0 Passed
Councilor Kwaks Aye
Councilor Bergeron Aye
Councilor LaBranche Aye
Councilor Ploski Aye
Councilor Minutelli Aye
Councilor Carr Aye
Chairman Glennon Aye
Chairman Glennon thanked Julie Glover and Rick Malasky for their time in coming to this meeting on short notice to deal with this issue.
