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, July 9, 2012 9:00 AM Room 301-B, City Hall Meeting called to order at 9:06 a.m. Present: Matson, Bauman, Dudzik, Schifalacqua, Froh, Korban Excused: Nicolini Also in attendance: Kathy Brengosz, Fiscal Planning Specialist 1. Review and approval of the minutes of the May 23rd meeting. The minutes were approved as written. 2. Presentation of the Sewers Condition Report. Individuals appearing: Tim Thur, Environmental Engineering, DPW Ald. Jim Bohl, 5th District Mr. Thur gave a presentation of the Sewer Condition Report (please see the attachment "Sewer Condition Report PowerPoint" to Common Council file 111338). Mr. Thur said that the City has 2453 miles of sewers. The system is composed of three types of sewers, sanitary, storm and combined sewers. Combined sewers, which transport both sanitary waste and stormwater runoff, are found in the City in an area bounded roughly by Lake Michigan, Hawley Road, Capital Drive and Oklahoma Avenue. Approximately 75% of the City’s sewers are under 21” in diameter. The larger diameter sewers tend to be storm and combined sewers. Most of the sewers that are more than 90 years old are in the combined area. Although they are beyond their useful life many of them are still in good condition. Many were made of brick which tend to hold up well as long as they get regular maintenance. Some are actually in better condition than the sewers made of early concrete pipe. City of Milwaukee Page 1 CAPITAL IMPROVEMENTS Meeting Minutes July 9, 2012 COMMITTEE Mr. Thur said that most of the capital program for sewers is allocated to the Relief and Relay program. The Inflow and Infiltration (I/I) program receives funding from MMSD in addition to City funding. Funding from MMSD which allows the City to do work on private property is anticipated to continue through 2017. The Water Quality program addresses the requirements of the City’s water quality permit. The budget for this program is relatively modest but pending regulatory changes could dramatically affect this program. Mr. Thur said that the amount of sewers that are replaced using open cut methods has remained about the same and the amount that have been rehabilitated using lining has increased dramatically. The ten year average for sewer lining is 21 miles per year. The four year average is 34 miles. Ald. Dudzik asked if the department totals include the lateral lining that is being done in the pilot area near Cooper Park. Mr. Thur replied that the sewer mains in the pilot area are included but the laterals are not. Mr. Thur said that 219 miles of the sewer system are over 90 years old. The City has been able to address some of the backlog of old sewers by increasing the sewer program in recent years. Mr. Thur added that this level of replacement may not be sustainable. Not all sewers can be relined as some may be too deteriorated or too small hydraulically to make lining feasible. If the City runs out of sewers that are good candidates for lining, the City may have to return to open cut replacement. Mr. Thur said that there are a number of different ways that sewer mains are identified for replacement. The City develops an index rating for sewers over 50 years old based on a physical examination of the sewer using closed circuit television cameras. The pipe is given a rating based on the type of defect and the severity of the defect. Hydraulics, backwater history and input from sewer maintenance staff are factored into the index rating. The rating scale is from 0 to 100. Sewer mains that receive a score in the 30 to 40 range or even the low 50s will be scheduled for replacement. The sewers on all paving projects are examined regardless of age or index rating. If the sewer is older than 80 or 90 years it will be replaced even if the index rating is good. Mr. Thur said that his department has improved its coordination with the Transportation section of Infrastructure Services to avoid cutting new pavement, but he acknowledged that it does happen from time to time. Mr. Thur discussed the non-compliant meter sheds that are part of MMSD’s 2020 Facilities Plan. Using monitoring and modeling, MMSD calculated allowable flow rates out of the meter sheds and determined that Milwaukee has 15 non-compliant meter sheds. Flows in those areas must be reduced by reducing I/I. Most of the non-compliant meter sheds are in the separated sewer area. Mr. Thur said the department is working with neighboring communities to address the deficiencies in meter sheds that cross municipal boundaries. Mr. Thur explained that non-compliant meter sheds have been prioritized by how far over the allowable flow limits they are and by the number of basement backups in the area. The department’s strategy is to line sewer mains and rehabilitate manholes to make sure that the public side isn’t causing the problems. If the system is close to the flow limit, that may be enough to bring it into compliance. If the flow rate is significantly higher than the limit, private property work would probably be required. Mr. Thur said this could include lateral lining, foundation drain disconnection or both. Mr. Korban added that the department cannot just put in a bigger pipe to accommodate the excess flow because MMSD won’t allow it. Mr. Thur agreed. Ald. City of Milwaukee Page 2 CAPITAL IMPROVEMENTS Meeting Minutes July 9, 2012 COMMITTEE Dudzik asked if the condition of the mains in these areas will allow for lining. Mr. Thur said that he expected that about 95% of the mains will be lined. Mr. Schifalacqua asked how Milwaukee’s compliance compares to the suburbs. Mr. Thur said that there are between 40 and 45 non-compliant meter sheds. Most of them are in Milwaukee but Milwaukee also has most of the system. The suburbs that are further away from Milwaukee, like Franklin and Brookfield, generally don’t have non-compliant meter sheds because they are fairly new. Closer suburbs like Wauwatosa, Greenfield and Greendale have their share of non-compliant meter sheds. Mr. Korban said that the biggest challenge will be funding the private property work if the system can’t be brought into compliance with main lining. Mr. Thur agreed. He said that the Cooper Park pilot project is being done with MMSD funding, but there is not enough money to do all the meter sheds. He added that decisions on cost sharing with MMSD or property owners as well as the voluntary versus mandatory nature of the program will have to be made. Mr. Thur said that water quality standards are mandated by the federal government under the Clean Water Act. In Wisconsin, the Dept. of Natural Resources has regulatory authority to oversee compliance. MMSD is developing limits for the amount of phosphorus, sediment (TSS) and fecal coliform that will be allowed to enter the City’s waterways and total maximum daily loads (TMDL) will be established for four watersheds: the Menomonee River, the Kinnickinnic River, the Milwaukee River and the Milwaukee River estuary. TMDLs have already been established for the Rock River and the lower Fox River. The regulations will apply to the entire watershed, not just the portions in Milwaukee. Mr. Thur added that MMSD expects to have a draft to the DNR by September 2012, TMDL limits finalized by December 2012 and an implementation plan in place by 2013. He also said that MMSD may be a few months behind schedule. Mr. Thur said that the City is using bio-swales, rain gardens, catch basins, street sweeping, wet ponds and grass swales to remove sediment. For monitoring purposes, the removal of TSS is a proxy for phosphorus removal. So the city’s TSS practices will result in phosphorous reduction benefits. Mr. Thur said that the biggest maintenance challenge has been litter that collects in the 27th Street bio-swales. Litter hasn’t been as much of a problem at other sites because the swales are generally located in the median not the tree border. Mr. Thur also said that detention ponds are effective for reducing sediment but finding a large enough site is a challenge. The department worked with neighbors at Hartung Park in addressing safety and aesthetic concerns to create a 2 ½ acre detention pond. Mr. Thur said that bacteria is more of a challenge. The main source of bacteria in urban areas is likely to be leaky sanitary laterals. Mr. Korban asked how effective the bio-swales are and what other measures the department is going to use to meet the proposed TMDL limits. Mr. Thur responded that the bio-swales are very effective. They can reduce TSS by 80% which equates to a 40% reduction in phosphorus. The problem is that they drain smaller areas so you need more of them and there are maintenance costs involved. The City could also use porous pavement to reduce TSS. He added that it is challenging to add enough green infrastructure within a built environment to meet the target goals. Mr. Schifalacqua. asked how up-to-date sewer inspections are. Mr. Thur responded that sewers that are less than 50 years old are typically not inspected. As the sewer City of Milwaukee Page 3 CAPITAL IMPROVEMENTS Meeting Minutes July 9, 2012 COMMITTEE ages it is inspected more frequently. A sewer inspection report is considered to be reliable for about five years. Over the last 20 years, the department has inspected all sanitary and combined sewers that are over 50 years old, but some have not been looked at in 10 or 15 years. Mr. Thur said that he would forward the inspection schedule to the committee. Mr. Froh said that when MMSD was created many interceptor sewers were turned over to them, but the City still has a significant amount of large sewers. He asked if the City can sell them to MMSD. Mr. Thur said no. He added that MMSD is trying to give back between 75 and 100 miles of sewers that they feel don’t really fit the definition of inceptor sewers. Ald. Bohl asked how the department coordinates sewer projects with paving projects. Mr. Thur said that the department uses the information from the Engineering Letters to schedule sewer exams. If the sewer is somewhat questionable, the department will line it. He added that sometimes the sewer looks okay when it is inspected but the construction activities may have an adverse affect on its condition. In that situation the City may have to replace it two or three years down the road. Ald. Bohl asked about the life expectancy of lined sewers. Mr. Thur replied that the City currently anticipates a 50 year life expectancy. However, based on the performance history of installed liners, the industry is now saying that liners may last between 75 and 80 years. Mr. Thur said he believes that a range of 50 to 75 years is reasonable. Mr. Korban added that in response to comments made by the committee last year the department looked at lined sewers that were 25 years old. There was some discoloration but overall they were in good condition. Mr. Schifalacqua asked Mr. Thur what his prediction was for the future of the sewer program. Mr. Thur said that he anticipates growth in the program to address the peak years of sewer construction after the war. In some years, between 60 and 70 miles of sewers were constructed. He also said that construction prices have been favorable recently so even if construction levels remain constant, the program will become more expensive as prices return to more normal levels. Mr. Schifalacqua said that the post war building boom is going to come due in the next 10 to 15 years and Mr. Thur agreed. He also said that the quality of the sewers built in the 1950s may be questionable. Ald. Dudzik asked if the problem was the quality of the materials or the workmanship. Mr. Thur said that it may have been a bit of both. There was so much work being done because of the housing shortage that shortcuts may have been taken. Ald. Dudzik asked if the industry has looked at how materials from sewers and linings ends up in the waterways over time. Mr. Thur said that MMSD does testing and monitoring and they haven’t brought those types of concerns to the City’s attention. It’s possible that it could be an issue in the future but the department hasn’t heard anything yet. Ms. Brengosz said that contamination concerns are more related with construction practices not the degradation of the lining material over time. Ms. Brengosz asked if it is feasible for the department to inspect sewers that are over 50 years old every 5 years. Mr. Thur said that it would be very expensive to do that as it would require the hiring of additional staff or consultants. He said the department may be able to accelerate the inspection schedule somewhat, but that doing them every five years would not be the best use of available funding. Ms. Brengosz asked if there will be a formal process for evaluating bio-swales and other storm water projects. Mr. Thur said that there is an existing form for detention facilities which the City inspects every couple of years. Similar forms could be City of Milwaukee Page 4 CAPITAL IMPROVEMENTS Meeting Minutes July 9, 2012 COMMITTEE developed in the near future for other types of facilities. The department will also create a database to monitor their on-going condition. 3. Presentation of the Parking Condition Report. Individuals appearing: Cindy Angelos, Department of Public Works Sean Schutten, Department of Public Works Ms. Angelos and Mr. Schutten gave a presentation on parking operations of the five City-owned parking structures (please see the attachment "Parking Condition Report Presentation 2012" to Common Council file 111338). Ms. Angelos said that in the early 2000’s a consultant study was done of all the engineering needs at the City’s parking garages. There was a long list of projects that have now been completed and every year the City conducts a structural inspection of the garages. Now that those projects are done, DPW is reviewing mechanical and electrical needs and incorporating them into the capital plan. Mr. Schutten said that 2011 was the first year DPW did an evaluation of the parking structures using the Facility Condition Assessment Program (FCAP). So this is the first year that the department can do an update analysis through the FCAP. DPW and Parking staff reviewed the condition of parking elements and the status of proposed capital improvements. He added that when DPW Facilities began evaluating the structures there were no outstanding capital repairs or deferred maintenance. Mr. Schutten said that there are three structures that will have capital projects this year. The structure at 2nd & Plankinton will have structural repairs and elevator replacement. The 4th Street and 1000 N. Water Street garages will both have structural repairs. He added that the facilities condition index (FCI) is the ratio between expenditures and the value of the property. The range for the FCI is 0 through 0.1. Zero through 0.05 is good, 0.05 through 0.1 is fair and above 0.1 is poor. After completing the anticipated projects the FCI for all three structures will be in the good range. Mr. Schifalacqua asked if the same basis is used for the parking garages as for other City buildings. Mr. Schutten answered yes. Ald. Dudzik asked if the disagreement with the other owner of the 1000 N. Water Street structure been resolved. Ms. Angelos responded that the City owns the parking garage and Mr. Palermo owns everything else, including the office tower, rights to the 2nd office tower and the credit union space. Mr. Palermo has talked about purchasing the garage – but not recently. Ald. Dudzik asked if Mr. Palermo participates in the capital costs for the garage. Ms. Angelos said no. The City shares costs for the common areas, such as the State Street lobby back to the parking garage elevators and the stairways between the 1st floor and the garage space. Mr. Schutten said the department did an overview of expected expenditures over the next twenty years. When comparing last year to this year, three significant changes were found. 1. At the 2nd & Plankinton structure there was an increase of $1.2 million over 20 City of Milwaukee Page 5 CAPITAL IMPROVEMENTS Meeting Minutes July 9, 2012 COMMITTEE years relating to the helical exit ramp. A new membrane with a 6 year life will be installed to prolong the overall life of the structure. This represents the implementation of an on-going maintenance program where one did not exist before. 2. The inspection at the 1000 N. Water Street structure revealed that the fire suppression system was starting to rust. The capital program added coatings to the system and deleted the replacement of sprinklers resulting in a savings of $2 million in the long run. 3. A review of the MacArthur Square plan revealed that certain capital expenditures had been counted twice resulting in an inflated estimate of the 20 year costs. Mr. Froh asked how parking revenues compared to planned expenditures. Ms. Angelos answered that each structure has different usage rates. Overall parking city wide has been down. The City has been meeting or exceeding revenue projections at all the garages except one. Revenue at the 4th and Highland structure was adversely affected by the shortened NBA season. Mr. Schifalacqua inquired about other infrastructure elements for parking like surface lots and meters. Ms. Angelos replied that DPW will be inspecting those elements next year. She added that the surface lots provide very limited amounts of revenue and that the City does not maintain as many surface lots as it used to. In the last eight or nine years, approximately ten surface lots have been sold. Mr. Schifalacqua said that in the future, the committee would like to see inventory, condition and revenue information for the other parking infrastructure. 4. Discussion of future agenda items. Ms. Brengosz presented a memo regarding potential future agenda items (please see the attachment “Memo to CIC Re Future Agenda Items” to Council file 111338). Ald. Dudzik asked the committee if they would like to take any of the items up at future meetings. Ald. Bauman asked if the review of the Police Department’s request for information (RFI) for a new records management system (RMS) was properly under the purview of the committee. Mr. Froh indicated that he did not think it was. Ms. Brengosz said that the Police Department did make a capital request for a new RMS system. This would evaluate new information available for the request that the committee already reviewed in April. Mr. Schifalacqua said that he would like to see a briefing on the Mayor’s Proposed 2013 Budget after it has been presented. Ms. Brengosz said that the most likely date for such a presentation would be October 5th. That date would be after the presentation of the Mayor’s budget and before the beginning of the Finance and Personnel committee’s budget hearings. Mr. Matson said that the first and second items from the memo, a report on revised debt limit projections from the Comptroller’s Office and a briefing from the Budget Office on the 2013 Capital Budget, should be taken up at the same time. Mr. Froh said that at the last neighborhood meeting in his area, the new County Supervisor, David Cullen, presented a five year financial forecast for the county. He City of Milwaukee Page 6 CAPITAL IMPROVEMENTS Meeting Minutes July 9, 2012 COMMITTEE said that the forecast is somewhat grim and Mr. Froh noticed that they were projected a downward trend for capital improvement. Mr. Froh said that a forecast from the Budget Office like the one presented by Mr. Cullen would be useful. This type of report would go hand in had with the debt service. Ald. Dudzik asked what was on the agenda for the July 25th meeting. Ms. Brengosz replied that Milwaukee Water Works is scheduled to present its condition data. 5. Set next agenda. A condition report from the Water Works is scheduled. A DPW report on the status of the residential paving audit may be scheduled as well. Meeting adjourned at 10:14 a.m. Staff Assistant Tobie Black This meeting can be viewed in its entirety through the City's Legislative Research Center at http://milwaukee.legistar.com/calendar. City of Milwaukee Page 7