CAPITAL IMPROVEMENTS COMMITTEE

200 E. Wells Street City of Milwaukee Milwaukee, Wisconsin 53202 Meeting Minutes CAPITAL IMPROVEMENTS COMMITTEE ALD. JOSEPH DUDZIK, CHAIR Ald. Robert Bauman, Ald. Michael Murphy, Ghassan Korban, Martin Matson, Mark Nicolini, and Mariano Schifalacqua Staff Assistant: Tobie Black, 286-2231; Fax: 286-3456, tblack@milwaukee.gov Fiscal Planning Specialist: Kathleen Brengosz, 286-3926, kbreng@milwaukee.gov Monday, October 17, 2011 9:00 AM Room 301-A, City Hall Meeting called to order at 9:12 a.m. Present: 6 Daun, Nicolini, Dudzik, Schifalacqua, Froh, Korban Excused: 1 Bauman Also in attendance: Kathleen Brengosz, City Clerk's Office Venu Gupta, Department of Public Works 1. Presentation of the Police Department Condition Report. Individuals appearing: John Ledvina, Finance and Planning Manager, Milwaukee Police Department Rick Moore, Facilities Manager, Milwaukee Police Department Mr. Ledvina presented a PowerPoint (please see the attachment "Police Department Condition Report" in Common Council File 101153) regarding the condition of the police department facilities. Mr. Schifalacqua asked for more detail on the Facilities Condition Assessment. Mr. Moore said that the department has been in contact with the Department of Public Works, which will perform the Facility Condition Assessments. He said that the MPD would like to the assessment to be in the same format as those done for the other City buildings. Mr. Daun asked what the timetable is for DPW's overall condition assessment effort. Mr. Gupta said that it is too early to come up with a time schedule, but DPW believes it can be completed before the next budget cycle. He said that DPW has an advantage because the Police Administration Building study lays out a template for the Condition Assessment of a large facility. Since the largest building in the MPD's facilities has already been assessed, the largest portion is already in place. Ald. Dudzik asked about the Police Administration Building study and Ald. Bauman's questions regarding moving the building as opposed to renovating it. Mr. Ledvina said City of Milwaukee Page 1 CAPITAL IMPROVEMENTS Meeting Minutes October 17, 2011 COMMITTEE that the cost of moving the PAB was in the 100 million dollar range, and the current plan is only 59 million dollars, including renovation of the City Attoney's offices and the Municipal Court. Ald. Dudzik asked what the flammable storage facility at 26th and Wisconsin is used for. Mr. Ledvina said that it is for evidentiary flammables. Ald. Dudzik then asked how much of the 5.5 million dollars being spent on the renovation of Police Administration Building is cash or borrowing. Mr. Nicolini said that it is all borrowing. Ald. Dudzik asked if the Evidence Storage Facility has any fire suppression system. Mr Moore said that there is a fire alarm system but no fire suppression system. Ald. Dudzik then asked about the plans for a new freight elevator in the Evidence Storage Facility. Mr. Moore said that the existing elevator is the only elevator and is the original elevator for the building. It will need be be totally replaced, which explains the $760,000 cost. Ald. Dudzik asked about the additonal sites for radio and Communications updates in Districts 4 and 7. Mr. Ledvina said that the upgrade relates to OpenSky and that the MPD will be obtaining 250 portable radios for officers. Each radio will be individualized and the officer can take it home with him or her. Ald. Dudzik asked if the radios have GPS capabilties. Mr. Ledvina said that he would check. Mr. Froh asked if another anntenna was planned between districts 4 and 7. Mr. Ledvina said yes and explained that the purpose is to boost the signal. Mr. Froh asked if it will be a wireless communication. Mr. Ledvina said that he believes that fiber optic communication is included in the plan. Ms. Brengosz asked how the information from DPWs assessment will be maintained on an ongoing basis once DPW completes the assessment. Mr. Moore said that as of now, MPD does not have any formalized work order system. He said that the department is woking with DPW to potentially create a work order system that provides updates with regards to tracking repairs and major capital work. Currently, the department only has a manual paper system that tracks a lot of detail. Mr. Daun asked the MPD to give an overall impression of the status of the condition of its facilties and to identify any areas that are in risk of impending failures or safety hazards. Mr. Moore said tha the facilities have not been adequately maintained over the years. As for safety concerns, he said that the parking structure in District 3 has failed in certain areas and in Disrict 6, the spancrete has failed at the entrance. He also said that that there are issues with HVAC, but there have been great strides in getting those systems replaced. 2. Discussion of capital requests relative to building maintenance. Mr. Gupta said that there will be a standardizing of the approach to facilities maintenance. For example, the City used to have forty individuals doing custodial work for the City Hall Complex, and now there are 20 individuals doing the work. This has resulted in .5 million dollars in savings every year. The reduction was the result of better practices, using more systematic software, and better technology. With regards to building maintenance, DPW has consolidated various activities and the department has an automated software system for work orders. Today, preventive maintenance is generated by the automated system itself and now everything is generated based on run times. The run time is picked up by the software, which then generates a preventive maintenance work order. Mr. Gupta City of Milwaukee Page 2 CAPITAL IMPROVEMENTS Meeting Minutes October 17, 2011 COMMITTEE added that the software could be segmented for different departments, and the savings generated can result in more money for condition reporting. Mr. Gupta said that the department believes that the time has come to unify the management structure for facilities management, which will be more cost effective and will result in a more standardized approach to the management of buildings. Ald. Dudzik said that when DPW first started going to a gas card system to determine how many miles a vehicle was being driven and he asked if that was the beginning of basing maintenance on run times. Mr. Gupta said yes and he that previously, it was common practice to do maintenance on a time schedule, but it is now done on run times or mileage. Ald. Dudzik asked if the department relies only on run time to determine a maintenance schedule. Mr. Gupta said no and said that the condition of the equipment is also taken into account. Mr. Froh asked if data collection devices will have to be installed for the non-DPW facilities. Mr. Gupta expalined that much of the data exists in different departments; however, all the data may not exist in one place. He said that there is currently a building management system that is used for DPW facilities only, but that system would be extended and different departments would have access to it. The departments could create thier own work orders and schedule preventive maintenance. Although other departments are using DPW's data, Ald. Dudzik asked if there will be other ways of obtaining data about non-DPW facilities besides visual inspections. Mr. Gupta said information will be culled from any reports that departmens have done or electronic data that departments have collected. There will be a multitude of methods for assessing the condition of facilities before a database of information is created and assessment will be easier to perform after the preliminary data is collected. Mr. Gupta added that in the future, vendors who perform work can be asked to provide an electronic version of data and any preventative maintenance required as part of any upgrade. Mr. Daun asked Mr. Gupta to define the distinction between building maintenance and capital improvements. Mr. Gupta said that anything costing less than 25,000 dollars would be considered maintenance instead of a capital improvement. He added that if the maintenance of an aspect of a building is deferred because of a lack of funds, the deferred maintenance down the road will be considered capital improvement program. Mr. Daun also asked if the maintenance will continue to be factored into the departments' budget even though DPW will be managing the facilities. Mr. Gupta said that the maintenance costs will likely still be in the departments' budgets, but by having one database, the condition of buildings will dictate which department will be given the appropriate funding. Mr. Daun asked how long it will take to have the database to support DPW's management. Mr. Gupta answered that he can see it being a three year program. Mr. Daun said that one of the bid advantages of the database is determining which departments are the most in need of funds for repairs. Ms. Brengosz said that the Capital Improvements Committee has requested condition information from individual departments on an annual basis. She asked how DPW's involvement will affect how the committee receive information on the condition of department's facilities. Ms. Brengosz asked if a full department analysis can be made on a five-year cycle or would the worst facility be inspected first. Mr. Gupta said that 20 percent of all buildings should be inspected each year and the objective is for all city facilities, not just DPW facilities, to be inspected every five years. Mr. Schifalacqua said that while he supports DPW acting as a consultant to City of Milwaukee Page 3 CAPITAL IMPROVEMENTS Meeting Minutes October 17, 2011 COMMITTEE departments, he said that departments should still take responsibility for programming and maintaining their facilities. Mr. Gupta said that it will help to have a unified process and the central management of the buildings to free up more time for the departments to focus on their specific operations. 3. Further discussion of the Mayor's Proposed Budget as it relates to Capital Improvements. Ald. Dudzik mentioned the spreadsheet on 2012 proposed funding sources that Ms. Brengosz previously distributed has been corrected. Mr. Schifalacqua said that the 3.5 million dollars requested by Milwaukee Water Works in the Capital Improvements Committee's proposed budget for its distribution system was already extremely low and that the committee should have received more feedback on why the budgeted amount was eliminated completely in the Mayor's proposed budget. Mr. Korban said that the committee's recommendation was followed, but it was not reflected in the spreadsheet. Ms. Lewis at budget hearings that the water main replacement budget is 3.5 to 4 million dollars. Mr. Schifalacqua said that the money that is in the budget is carryover funds, which means that the program was not completed this year. This should not necessarily mean that if a department does not spend all of its funds is should not get future funding. Mr. Daun said that the budget is out of the Mayor's hands now and if there are any issues that the committee wants to address the committee can take those issues to the Finance and Personnel Committee for action on the Mayor's proposed budget. Mr. Daun asked Ms. Brengosz to discuss the other differences between teh CIC recommendations and the amounts in the Proposed Budget. Ms. Brengosz said that this is the first year that the commitee has made recommendations to the Budget Office and the office took at the recommendations of the CIC and made them part of the requested budget, even if there may have been adjustments later. In the future there may be opportunities for improvements in the process. Ms. Brengosz said that one of the differences between the committee's recommendations and the proposed budget dealt with the renovation of the 8th floor of City Hall. The renovation of the City Attorney's office will take place over the course of three years instead of two years, which was the time frame that the committee recommended. Ms. Brengosz also mentioned that with regard to Recreational Facilities, the amount of capital funding that was recommended did not change, but the committee recommended that Recreational Facilities stay in a dedicated program. This recommendation did not make it into the proposed budget. The funding for Recreational Facilities is still distributed between the ADA Program and the Outlying Facilities Program. The committee recommended that it remain a dedicated source of funding to make it easier to track. As it is, if one looks at the six-year Capital requests, it is not possible to tell how much money is planned for Recreational Facilities because it gets lumped into the dollar amount for the garages. Mr. Daun said that there were consistent funding reductions in infrastructure, particularly for Alleys, Traffic Control and Underground Conduits. Mr. Daun said that investments in infrasctructure is fundamental and that the last priority for cost saving measures should be for infrastructure. When the City reduces the needed investments in infrastructure, the City falls behind and will need to catch up. Ms. Brengosz said that the difference between the propsed amounts and recommended amounts may be the result of how some of the departments put together their capital requests for 2012. In the past some department requested only the money that the department believed it could get. Some current requests include all potential projects City of Milwaukee Page 4 CAPITAL IMPROVEMENTS Meeting Minutes October 17, 2011 COMMITTEE and opportunities, even though the amount was much more than what was requested in the past. Mr. Daun said that Ms. Brengosz should work closely with the Budget Office to identify any data that is missing or insufficient to identify any funding requests that may have been inflated by the departments. Ms. Brengosz said that the committee will be in a better position to make more informed recommendations in the future. Ald. Dudzik away from the table at 10:12 A.M. Mr. Froh asked about increasing investment in sidewalks. He mentioned that Ald. Bauman suggested increasing borrowing for sidewalk projects and that he would like to see the topic open for discussion. Mr. Schifalacqua said that the discussion might be more appropriate for a time when the committee starts working with the departments to put together their budgets. Mr. Froh said that he would like to lend support for funding of this type of project in the budget for 2012. Mr. Schifalacqua asked if Mr. Froh is suggesting that the sidewalk program be used as an economic empowerment tool. Mr. Froh said yes. He added that even if the City is currently on track with its sidewalk replacement projects, there should be more funding for the projects. Mr. Daun asked if there is a backlog of sidewalk projects. Mr. Korban said that he does not believe so and the City is in good shape with regard to sidewalk replacement. He also said that sidewalk projects involve skilled work and involve a lot of scheduling and a lot of resources. Mr. Daun said that while Mr. Froh's point is well taken, it is not necessarily the committee's role to foster economic development proposals. Mr. Froh said that he is certain that when sidewalk projects are not large scale and do not use mechanized equipment, there is a lot of potential for creating a lot of manual labor jobs. Mr. Schifalacqua said that the committee should focus on what the infrastructure needs are and that there are other committees more suited to addressing economic development. 4. Set next agenda. The next meeting date is November 10th at 9:00 a.m. The Health Department may be giving its condition report. Meeting adjourned at 10:29 a.m. Staff Assistant Tobie Black City of Milwaukee Page 5