CAPITAL IMPROVEMENTS COMMITTEE

200 E. Wells Street City of Milwaukee Milwaukee, Wisconsin 53202 Meeting Minutes CAPITAL IMPROVEMENTS COMMITTEE ALD. NIK KOVAC, CHAIR Ald. Robert Bauman, Ald. Michael Murphy, Ghassan Korban, Martin Matson, Mark Nicolini, and Mariano Schifalacqua Staff Assistant: Linda Elmer, 286-2231 Fax: 286-3456, lelmer@milwaukee.gov Fiscal Planning Specialist: Kathleen Brengosz, 286-3926, kbreng@milwaukee.gov Thursday, February 28, 2013 9:00 AM Room 301-B, City Hall Meeting called to order at 9:11 a.m. 1. Review and approval of the February 6th meeting minutes. Minutes were approved as written. 2. Presentation of Underground Conduit & Communications Condition Report. Individuals appearing: David Henke, Department of Administration Bryan Pawlak, Department of Public Works Bob Bryson, Department of Public Works Karen Rogney, Department of Public Works Jeff Polenske, City Engineer Mr. Henke presented a PowerPoint regarding the Communications system (please see the attachment "Public Safety Communications Program PowerPoint" to Council file 121406). Mr. Henke and Mr. Pawlak discussed the condition of city-owned communication cabling and public safety infrastructure. Mr. Henke began by discussing the 2013 reorganization that moved the oversight of the communications infrastructure out of the Department of Public Works (DPW) and into the Department of Administration – Information and Technology Management Division (ITMD). He said that telecommunications for the City is divided into four different areas; the data network, the phone system, the physical cable plant and the communications conduit. ITMD is responsible for the design, installation, records, operation and maintenance of all of the hardware that comprises the City’s data network. ITMD is responsible for the design, records and operation of the phone system. The physical installation and maintenance of the phone system is done by DPW. For the cable City of Milwaukee Page 1 CAPITAL IMPROVEMENTS Meeting Minutes February 28, 2013 COMMITTEE plant, ITMD does the design and maintains the records and DPW does the installation and maintenance. Mr. Henke said the City leases conduit space to 3rd party providers who install their own cabling. ITMD manages those leases. He said that the revenue from 3rd party leases is approximately $750,000 annually and it has been growing slowly but steadily for several years. Mr. Henke said that copper cable is used primarily for small, remote facility connections such as sewer pump cabinets or traffic count stations, locations which have low bandwidth communications needs for small specific items. Mr. Henke said that fiber optic cable is used for the majority of the City’s network, which connects all of the City’s major facilities. He said that in future years, capital funding will be used to extend the network to other facilities such as the Housing Authority, libraries, water booster stations and smaller city buildings. Mr. Henke said that the system by design has redundant connections for critical facilities to ensure service. Mr. Henke said that the city phone network is comprised of two main phone systems. One system is dedicated to the Police and Fire Departments. It serves the 911 system and all of the administrative phones for the Police and Fire Departments. ITMD performs some administrative functions for that system on behalf of the Fire Department. The other phone system serves the rest of the City’s facilities. Funding is used to maintain and upgrade the phone system and the network hardware. A major upgrade of the phone system, which began in 2012, is essentially complete. The project included software upgrades for the phone system as well as improvements and upgrades for the Call Center. Mr. Henke said there are multiple construction projects planned for 27th Street; one between St. Paul and Highland and another from the KK River to Howard Avenue. The City will be relocating facilities in advance of those construction projects. Installation of new cabling will also be done in 2013 in conjunction with the Zoo Interchange project. Facilities will be restored on Capitol Drive and Morgan Avenue following the reconstruction projects in 2012. Mr. Henke said that the City has a large number of copper cables which are costly to maintain. The department wants to migrate off of the copper and onto fiber optic as much as possible to increase capacity and reduce maintenance costs. Mr. Henke said that there are approximately 500 active repair tickets for the copper plant. 137, 112, and 79 repair tickets were added in 2010, 2011 and 2012, respectively. He said that the department does not repair all of the reported troubles and that because the cable plant has excess capacity, service can sometimes be moved to alternate pairs within a cable. Over time, if the backlog of repairs continues to grow, the City will use up the buffer provided by the excess capacity. Mr. Henke said that fiber optic cables were damaged four times last year and three are still in need of repair. He said that most fiber optic damage incidents are caused by contractors excavating and that his office anticipates a couple every year. Mr. Schifalacqua asked which department will apply for capital funding now that the responsibility has been split between DPW and ITMD. Mr. Henke said that he would verify which department should apply. Mr. Nicolini said that he believed ITMD would submit the capital request. Mr. Schifalacqua said that in the past the Water Department had a similar split of responsibilities. He said it was not very efficient and all the functions were combined in one department. City of Milwaukee Page 2 CAPITAL IMPROVEMENTS Meeting Minutes February 28, 2013 COMMITTEE Mr. Bryson discussed the conduit system and the communications and electrical conduit manholes and presented a PowerPoint regarding the underground conduit and manholes (please see the attachment "Communications and Electrical Conduit and Manholes PowerPoint" to Council file 121406). He said that the conduit and manhole system provides the infrastructure that is needed to support the communication system as well as the street lighting system and the traffic signal system. He noted that communication cables have to remain separate from the power lines that are used for various purposes. Mr. Bryson said that much of the program for replacing conduit is driven by paving projects. He said that on connecting highway projects, the cost of installing conduit is 100% federally funded. Mr. Bryson said the City has 565 miles of conduit, 9% of which is iron pipe installed between 1888 and 1905. He said that clay tile was installed in the early part of the 20th century and fiber was used from 1938 to 1980. Currently the city uses PVC. Mr. Bryson said that 43% of the City’s communications manholes are brick installed between 1888 and 1950. Block manholes were installed between 1950 and 1980. The City switched from block to precast concrete because of the failure rate of the block manholes, most of which were constructed without reinforcement. Mr. Bryson said that the City currently does not have a program to do regular inspection of communications manholes. He said an inspection record database was created in 1988. Currently, over half of the City’s manhole inspection reports are at least 20 years old. Based on those records, 400 manholes need repair and 200 need to be replaced. He said that approximately 2000 manholes are older than 75 years. Mr. Bryson clarified that the 600 manholes that need work needed work at the time of the inspection and there may be more manholes today that need repair or replacement. Mr. Bryson said that manholes are inspected prior to street reconstruction projects. He said that 322 communications manholes were inspected last year in conjunction with paving activities. Mr. Bryson said that conduit has an estimated life of 75 years. He said the City would have to repair or replace roughly 100 manholes a year to keep up with a 75-year replacement cycle. Mr. Schifalacqua said that this committee has been interested in getting good existing data. He asked if there was a plan for updating the condition data. Mr. Bryson said yes. He said that Sewers currently has a program to inspect manholes on a five- to ten-year cycle. He said the department will work jointly with Sewers to include the inspection of communications manholes as part of their annual sewer manhole inspection contract. Mr. Schifalacqua asked if funds would be requested for the 2014 budget to do the survey. Mr. Bryson replied that the goal was to begin the inspection in 2013. Mr. Polenske said that the current sewer contract has some inspection of communications manholes. He said that partnering with Sewers would give an area wide component to the inspection program in addition to the project specific focus currently being used. Ald. Kovac asked how often communications manholes collapse. Ms. Rogney replied that there were eight manholes that were replaced last year. Mr. Bryson said that the department has been functioning on a reactive basis. He said that updating the condition of the entire manhole system would allow them to be proactive. Ald. Kovac asked how closely the inspection reports from 1988 identified manholes that ultimately failed. Mr. Bryson said that he didn’t know. Ald. Kovac asked if it was possible to find out. Mr. Bryson said yes. City of Milwaukee Page 3 CAPITAL IMPROVEMENTS Meeting Minutes February 28, 2013 COMMITTEE Mr. Bryson showed a picture of an old fiber duct. Ald. Kovac asked about its shape and condition. Ms. Rogney said that when fiber duct gets wet, it’s like cardboard. It deforms and can actually cause more problems than the older clay tile. Mr. Schifalacqua asked if there was program to replace the fiber duct. Mr. Polenske said no. Ald. Kovac asked why the City used fiber. Ms. Rogney replied that it was the industry standard at the time. Mr. Pawlak said that fiber duct becomes problematic when a cable gets damaged and has to be removed. The deformed fiber makes it difficult to pull cable through the ducts. He said that the City does use some Roto-Rooter type service to remove fiber from the inside of the casing. He said that replacing the entire conduit system would have significant impacts on service and would require a great deal of coordination. Replacement of fiber should be considered when the opportunity presents itself, such as with paving programs. Ald. Kovac if most of the cable troubles were caused by excavation or by natural deterioration of the system. Mr. Pawlak said he believed it was excavation. Mr. Froh suggested increasing external revenues to fund the repair and maintenance of the conduit and communications manhole system. He said that it seems difficult to get a comprehensive understanding of what is actually in the City’s ducts. He said that 3rd party lessees weren’t very clear or forthcoming about what they had in our system. He suggested reviewing and raising the lease rates to provide additional funding. Mr. Pawlak noted that lease revenue does not go to DPW. Mr. Froh replied that as long as the City received the revenue it would be a good thing. 3. Presentation of the Department of Public Works Buildings Condition Report. Individuals appearing: Paul Fredrich, Department of Public Works Sean Schutten, Department of Public Works Mr. Fredrich and Mr. Schutten presented a PowerPoint on the Facilities Condition Assessment Program (please see the attachement "FCAP PowerPoint 2013" to Council file 121406). Mr. Fredrich and Mr. Schutten discussed the City buildings that are maintained by DPW and the Facilities Condition Assessment Program (FCAP) that is used to evaluate the condition of the buildings and forecast capital expenditures. Mr. Fredrich said that the FCAP program involves a very comprehensive inspection of each facility’s interior, exterior, mechanicals and site. The results of the inspection are compiled into a database that is used to predict future capital needs. Mr. Fredrich said that DPW is responsible for 72 buildings and 18 vacant properties. The current replacement value is $347 million plus $10 million for the vacant properties. The department uses information from the City Attorney’s Office relative to the insurance on the buildings. He said that it is the State that actually establishes the values for the buildings. Mr. Schutten said that 30 buildings have complete FCAP reports and 29 buildings have been inspected and are currently being processed. Thirteen buildings are planned for 2013 and eight are planned for 2014. He said that the ten remaining properties, some of which are vacant properties, will be scheduled when the other buildings are complete. Mr. Schutten said that the FCAP complies with the recommendations of various governing agencies for different metrics that the City is using. He said the building City of Milwaukee Page 4 CAPITAL IMPROVEMENTS Meeting Minutes February 28, 2013 COMMITTEE inspections follow the facilities audit format of the Association of Higher Education Facilities Officers and the National Research Council standardized inspection process. Cost estimates are made following the recommendations of International Facilities Management Association (IFMA). The department also uses the key performance measure of the U.S. Department of the Interior, the Facilities Condition Index (FCI). He said that the entire process is tied into the American Public Works Association (APWA) recommendations for capital improvement planning and strategizing. Mr. Schutten said that each facility is broken down into its components; the envelope, building interior components and building control components. He said that maintenance is scheduled for 20 years, which is well beyond the six years that is generally standard for capital planning. Mr. Schutten said the key performance measure is the FCI which is an indication of what percentage of the building is deficient. From zero to 5% deficiency is considered good, 5.1% to 9.9 % is fair and anything greater than 10% would be considered a poor facility condition index. Mr. Schutten said that buildings can be looked at individually, but they can also be combined to determine the average condition of the City’s building portfolio. Mr. Schutten presented a summary table with all the buildings that have been inspected so far. He noted that just because a building has a good FCI it doesn’t mean no funding will be required at that facility. Ald. Kovac asked if this was a new system. Mr. Fredrich said that it is about 2 ½ years old. He said that three years ago, the department made an initial attempt and then refined the process over the last 2 years utilizing more nationally recognized standards and trying to make the system as efficient as possible. He said that there is a team of four or five people who inspect the buildings and process the information. He added that those employees have other duties as well. Mr. Gupta said that the first cycle will be the most time consuming. Once one cycle is complete the department intends to inspect 20% of the facilities each year for a 5-year inspection cycle. Mr. Nicolini said that the FCAP is a helpful planning tool but that it was important to look at the probability of asset failure, how well the asset is performing and the consequences of failure. He also said that 10% of asset replacement value qualifying as poor seems to be a fairly rigorous standard. Ald. Kovac asked if DPW was working with the Office of Environmental Sustainability. Mr. Gupta said yes. He added that the Mayor’s initiative called for a 15% energy savings by 2012. He said that DPW has reached that goal and has committed to an additional reduction of 5%. Mr. Fredrich said that DPW is working with other departments such as the Police Department, the Port of Milwaukee and the Health Department. Mr. Schifalacqua asked if DPW was working with the Fire Department. Mr. Fredrich said that DPW has had some preliminary discussions with the Fire Department. 4. Presentation of Recreation Facilities Condition Report. Individual appearing: Paul Fredrich, Department of Public Works Mr. Fredrich presented a PowerPoint presentation on the city's recreational facilities (please see the attachment "FCAP Rec Facilities PowerPoint" to Council file 121406). Mr. Fredrich discussed the City’s recreational facilities. He said that the City has 62 City of Milwaukee Page 5 CAPITAL IMPROVEMENTS Meeting Minutes February 28, 2013 COMMITTEE sites on 77 acres with a current replacement value of almost $ 20 million, including 46 play structures, 21 basketball courts and 4 tennis courts. He said that Milwaukee Public Schools has 36 sites on 259 acres with a current replacement value of almost $75 million. He added that the City is responsible for the reconstruction of all 98 sites and that DPW has completed facility condition assessments of all the City’s 62 sites. Mr. Fredrich said that the criteria by which DPW establishes its budget requests are driven by ADA compliance. He said that 75% of our sites are ADA compliant. Ald. Kovac asked if it was a moral hazard for MPS to maintain sites that the City is responsible for replacing. Mr. Fredrich replied that MPS does have its challenges but he believes that MPS does a fairly good job of maintaining the sites. He said it has been several years since MPS has contacted the City regarding a site that needed replacement. Ald. Kovac asked if MPS had their own system for evaluating the condition of the sites. Mr. Fredrich said it was likely that they did. Mr. Fredrich described the process for evaluating recreational sites. He said there was a field form for each site. The field form itemizes the equipment and includes information like age, current replacement value, overall condition rating and whether the site is ADA compliant. Information from the field form is put into the condition assessment form, which is used to develop the six year plan. He said the rec facilities use the same FCI scale as the buildings. Overall in 2014, the FCI is 0.02 for all recreational sites. Ald. Kovac asked how much of the funding for recreational facilities is coming from the ADA account. Mr. Fredrich said that normally the department will request funding for one or two sites each year to address the ADA deficiencies on that site. Ald. Kovac asked if there was a separate recreational facilities line in the capital budget. Ms. Brengosz said that prior to the 2012 budget there was a separate capital account for recreational facilities. Beginning in the 2012 budget, that account was no longer funded. The funding that would have gone into the recreational facilities account was put in the ADA account to address the ADA issues at the rec facilities. She said a portion was also put into the municipal garages and outlying facilities account to address issues that were not ADA related at other rec facilities. Mr. Fredrich said that following the Dept. of Justice’s evaluation of the City, it seemed best to address the ADA deficiencies at recreational facilities through a dedicated ADA program. Ald. Kovac asked if funding would return to the recreational facilities account once all the sites were ADA compliant. Mr. Fredrich said that it was possible. 5. Set next agenda. The next agenda includes a discussion of debt targets and a discussion of the 2014 Capital Requests. Meeting adjourned at 10:22 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 6