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, September 5, 2013 9:00 AM Room 301-B, City Hall Meeting called to order at 9:09 A.M. Members present: Gerard Froh, Ghasasn Korban, Nik Kovac, Mark Nicolini, and Robert Bauman. Members excused: Mariano Schifalacqua 1. Review and approval of the minutes from the July 3, 2013 meeting. The minutes were approved as written. 2. Presentation of the Port of Milwaukee Condition Report. Indviduals appearing: Paul Vornholt, Port of Milwaukee ; Sean Schutten, Department of Public Works; Carrie Lewis, Milwaukee Water Works; Larry Sullivan, Port of Milwaukee Mr. Vornholt and Mr. Schutten appeared to present the Port of Milwaukee Condition Report (please see the attachment "Port Condition Report PowerPoint" to Council file 121406). Mr. Schutten said that the Department of Public Works (DPW) has been working with the Port for about a year. He presented the Port’s current capital program and then described how it would be reorganized to create eight classifications of assets that would each have a program associated with it. The proposed classifications are buildings, dockwalls, dredging, roads, railroads, water distribution, water management and equipment. Mr. Schutten said DPW is not the expert for all asset classes and that some condition information and recommendations may be provided by outside parties. Mr. Schutten said that component inventories have been completed for most of the asset classifications. He discussed the process by which the condition report and capital plan is formulated saying that multiple sources of information are used including Port records, audits, site inspections, consultant reports and information from outside agencies such as the Milwaukee Metropolitan Sewerage District (MMSD). He said that as individual asset modules are completed, they will be sent to the Port for review and approval. The approved modules will be combined to provide the basis for the Port’s annual capital request. City of Milwaukee Page 1 CAPITAL IMPROVEMENTS Meeting Minutes September 5, 2013 COMMITTEE Mr. Schutten discussed record keeping upgrades saying that several asset classes including dockwalls, sewers and the water distribution system were converted from a PDF format to Microstation computer files. Mr. Schutten discussed the various asset classifications at the Port. He said that the Port has 20 facilities of varying age with a current replacement value of $237 million. He said that usage also varies but the facilities are primarily industrial buildings and warehouses that are available for lease to tenants. He said that the Port has approximately seven miles of dockwall, divided into 20 sections, whose use and age varies. Mr. Schutten said that the surveys used to determine the location and frequency of dredging are outsourced. Mr. Schutten said that the roadway inventory has been completed and that the roadways within the Port have various owners with varying pavement conditions. Mr. Schutten said that the Port’s water distribution system consists of about 31,000 linear feet of water mains that are primarily cast iron or ductile iron. Based on their age, approximately half of them would be due for replacement in the next 20 years. Mr. Schutten said that the sewer facilities within the Port also have various owners. He said that the Port owns almost half of the 66,000 lineal feet of sanitary and stormwater mains in the system. Mr. Schutten discussed the Port’s vehicles and equipment. Ald. Kovac asked if the Port was in charge of its own internal water distribution system. Mr. Schutten said yes. Mr. Vornholdt said that if the Milwaukee Water Works (MWW) would take over the Port’s system, the Public Service Commission would require major upgrades. Ms. Lewis confirmed that the Port’s water distribution system is considered a private system from the MWW perspective and that MWW does not have responsibility for maintaining it. Ald. Bauman asked if the Port was using MWW to flush the hydrants in the system. Mr. Vornholdt said that recent discussions between the Port and MWW have led to an agreement to have MWW staff flush and inspect the Port’s hydrants. He said that other water main work would likely be performed by contractors. Ald. Bauman asked if MWW was being reimbursed for their work. Mr. Vornholdt said yes. He added that the Port’s tenants do not use enough water to adequately flush the system. He said that the Port is having discussions with MMSD regarding having MMSD’s water being supplied through the Port’s distribution system. Ms. Brengosz asked the Port to provide the number of annual water main breaks to the committee. Mr. Schutten said that the evaluation of the railroads has not been completed yet. Mr. Vornholdt said that the Port has entered into a two year maintenance agreement to address problematic sections of track. He added that the Port had obtained software to document track condition and that maintenance efforts will include upgrading track from their existing 90 pound rails to the current standard of 110 or 115. Ald. Kovac asked when the last comprehensive infrastructure review was done. Mr. Sullivan said that the Port has had several capital plans over the last few years. Ald. Kovac pointed out that a capital plan is different than an infrastructure review. Mr. Vornholdt said that the Port has always complied with the Comptroller’s FMIS system requirements for inventory review and site inspection. 3. Presentation of the Water Works Condition Report. Individual appearing: Carrie Lewis, Milwaukee Water Works Ms. Lewis appeared to present the Water Works Condition Report (please see the attachment "Water Works Condition Report PowerPoint" to Council file 121406). Ms. Lewis said the approach of the report was similar to last year's report . City of Milwaukee Page 2 CAPITAL IMPROVEMENTS Meeting Minutes September 5, 2013 COMMITTEE Milwaukee Water Works (MWW assets) were divided four groups; water treatment plants, pumping and storage facilities; the distribution system; and the meter shops. MWW evaluated 220 attributes on the treatment plants and 117 attributes on the pumping stations. Ms. Lewis discussed several recent capital projects including the pump room roof at Linnwood which was completed in November 2012; a 60” wash water pipe which required emergency repair; the stainless steel plate system constructed by DPW; and the switchgear and backup power generation project at the Florist Avenue pumping station. Ms. Lewis said that MWW is designing backup power generation for the Linnwood plant, refurbishing the ozone system, and making automation upgrades. She said MWW completed an assessment of the pipelines that exit the Northpoint pumping station and found them to be in good condition. She said that the condition ratings have improved for the water treatment plants and pumping and storage facilities since 2011. Ald. Kovac asked if the lining used in the wash water pipe contained styrene. Ms. Lewis said no. She added that only materials that are NSF61 certified can be used. Ald. Bauman asked if the entire water system has backup power generation. Ms. Lewis said not yet. She said that two pumping stations are complete and that the next project will be one of the treatment plants. Ald. Bauman asked if there was enough residual pressure in the system to deliver water without pumping. Ms. Lewis said that the elevated storage tanks would provide some residual pressure but that it wouldn’t last long. Ald. Bauman asked if there was a contingency plan in the event of a widespread, power outage. Ms. Lewis said that it is possible to pump untreated lake water into the distribution system which would allow the City to maintain fire suppression activities and sanitation. Ms. Lewis discussed distribution maintenance activities and costs for hydrants, services and mains. She said that each of the system’s 20,000 hydrants is inspected every other year. She said that even though the number of activities is high, the percentage of maintenance dollars is relatively low. Services and mains comprise a low number of activities, but consume a majority of the maintenance dollars. Ms. Lewis presented the five year and ten year average annual water main breaks. The curves were similar with the five year average being generally lower than the ten year average. Ms. Lewis said the water mains can be divided into groups by their age and type of construction. She said that mains constructed between 1946 and 1963 make up 23% of the active miles in the system and have nearly 55% of the main breaks. She said most of the water main replacement dollars are being used to address water mains constructed in that era. Ms. Lewis said that MWW is also replacing some newer water mains because the Wisconsin Departmetn of Natural Resources has identified some geographical areas in the distribution system where the pressure is too low. Mains are being replaced before raising the pressure to avoid breaks. Ald. Bauman asked if there is a range of water pressure that the City is required to maintain. Ms. Lewis said that the minimum required pressure at the property line is 35psi and the maximum is 100psi. She said that the amount of pressure varies across the city and is partly a function of elevation. Ald. Kovac asked if there was a system to inspect water mains before they break. Ms. Lewis said that water mains generally cannot be inspected like sewer pipes because they are pressurized and need to remain sanitary. She said there are some internal and external technologies that can determine the integrity of the water main. She added that they may be useful on large pipes where the consequences of failure may be very high but they are not cost effective for the majority of mains in the City’s distribution system. She said it is more practical to do a statistical analysis of the pipe’s age and construction as well as the location and number of main breaks . Ald. Kovac asked about the consistency of the department’s assessment standards . Ms. Lewis said that the same employees are used each year to do the inspections to ensure consistency. Ald. Kovac asked if the department assessment standards were City of Milwaukee Page 3 CAPITAL IMPROVEMENTS Meeting Minutes September 5, 2013 COMMITTEE documented. Ms. Lewis said not yet. 4. Presentation of the Fleet Condition Report. Individuals appearing: Jeff Tews, DPW-Fleet Services; Paul Klajbor, DPW-Administrative Services ; Wanda Booker, DPW-Administrative Services Mr. Tews appeared to present the Fleet Services Condition Report (please see the attachment "Fleet Services Condition Report PowerPoint" to Council file 121406). Mr. Nicolini moved to hold the Fleet condition report. Ald. Bauman said that he had questions for the department. Mr. Nicolini withdrew his motion, reserving the right to recall the department at a later date. Mr. Tews presented information about the City’s capital fleet . He said the department has 123 different types of equipment. He said there are 2,966 pieces of Fleet Services equipment and 1,477 pieces of non-fleet equipment. Non-fleet equipment includes vehicles used by the Police Department, Milwaukee Water Works, Sewers, Parking, the Department of City Development, the Port of Milwaukee, and Milwaukee Public Schools. He said there are over 2,600 fueled pieces of equipment including 942 diesel and 1,600 gasoline units. Mr. Tews said that there are 786 units of capital equipment which is any equipment that has a cost over $50,000, with a total replacement value of $125.6 million. Capital equipment is 26.4% of the units and 81.3% of the value of the fleet. He said the average cost per unit is $106,408. Mr. Tews said that there are over 2,100 Operation and Maintenance (O&M) units with a total replacement value of $29 million. The average cost is $13,000 per unit. Mr. Tews discussed the main purposes of equipment. He said that vehicles are divided into six categories; refuse, snow and ice, street and sewer, forestry, construction, and shop and support. He said that the purpose of vehicles can change by season. Mr. Tews said that Milwaukee’s Fleet Services was designated as one of the 100 Best Fleets in North America by Government Fleet magazine. He said Milwaukee was ranked 61 of approximately 25,000 fleets. Ald. Bauman asked if there was a backlog for engine overhauls and heavy engine rebuilds and if the department had a target vehicle availability level. Mr. Tews said that the City does not overhaul engines in-house anymore. He said the City generally purchases rebuilt engines from one of several companies that specialize in that type of work. Mr. Tews said that the department tries to maintain a vehicle availability level of 90% for heavy equipment, 95% for light equipment and 95% for Police equipment. Currently the availability rate is about 88%. He also said that since 2010, when emission requirements changed, more maintenance is required. He added that the department will sometimes use outside labor to ensure vehicle availability. Mr. Tews said that the garage currently has six vacancies . Mr. Nicolini said that the vacant positions were not being held open. Mr. Tews said that an exam has been held and interviews are being conducted. He said that computer skills are highly desirable because heavy equipment can have four separate computer systems (brakes, body, engine and transmission). Ald. Bauman asked how many people applied for the position and what the position pays. Mr. Tews said he believed approximately 60 people applied. He said the starting rate without ASE certification is around $40,000. An experienced technician who is fully certified could earn around $52,000. Mr. Tews said that the Department of Employee Relations recently changed how technicians are classified and compensated. He said this has given the City of Milwaukee Page 4 CAPITAL IMPROVEMENTS Meeting Minutes September 5, 2013 COMMITTEE department more flexibility to assign employees where there is the greatest need and provided an incentive to employees to increase their certifications. Prior to the reclassification, two technicians had certifications for both heavy and light equipment. Now there are over 22. He said the reclassification may also help with employee retention. Mr. Tews discussed the life cycle of equipment. He said that annual evaluations of equipment begin once the vehicle reaches three quarters of its expected life. He said that vehicles are assigned numerical grades so they can be ranked by condition. He said the current average age of fleet capital equipment is 12.56 years. Mr. Tews said that for packers, maintenance and repair costs tend to increase significantly after year eleven. Ald. Kovac asked if old packers are sold for scrap or if they are used by other municipalities. Mr. Tews said they were sold mostly for scrap and parts. He said they are seldom purchased and put back in service. Ald. Kovac asked how the compressed natural gas (CNG) packers were working for snow operations. Mr. Tews said the City has 21 CNG trucks, 6 of which are the automated side-loading trucks. The automated trucks have only one drive axle instead of two and are not effective for plowing. Ms. Booker said that the standard CNG vehicles work well for both collection and snow removal. Mr. Tews said options for modifying the auto-loading trucks include purchasing them with diesel engines or reducing the size of the body. He said that the design of the side loading arms should not be altered because other models dump carts higher in the air causing them to hit wires and trees in the alleys. Ald. Kovac asked if the automated routes had one-person crews. Ms. Booker said yes. Ald. Kovac asked about the cost of automated side loading packers. Mr. Tews said that they are more expensive than traditional packers but that part of the increased cost was for the CNG engine. He said that the marginal cost of the CNG engines, $36,000, was paid by a grant. He said a grant will pay for 80% of the marginal cost for the next 20 trucks that the City purchases. He said the anticipated fuel savings is $6,500 annually per vehicle. He added that the marginal cost is expected to decrease as CNG use becomes more widespread. Mr. Korban asked about the stability of CNG prices. Mr. Tews said that the department has been tracking fuel costs. He said the price of compressed natural gas is not tied to petroleum fuels so it has been more stable than diesel or gasoline. He said the price of CNG has come down. Last year, the CNG station at Lincoln was selling fuel to the public for $1.98 per gallon of gasoline equivalent. The price is currently $1.26. Ms. Brengosz asked if the exportation of natural gas would affect the price stability. Mr. Klajbor said that the internal rate for CNG is about $1 and the rate for diesel is about $3.55. He said that even if the price of CNG were to go up somewhat, it would still be cost effective. Ald. Bauman asked if citizens were purchasing fuel. Mr. Tews said yes. Ald. Kovac asked if the system was totally automated. Mr. Tews said yes. Ms. Brengosz asked how much of the fleet is classified as reserve. She also asked if reserve equipment was included in the average fleet age. Mt. Tews said that no equipment is classified as reserve. As an example he said that there are 124 refuse packers and that at times, there may be as few as 77 routes. However, during Clean and Green and leaf collection, almost every packer is used. He said that the department tries to maintain a spare ratio on some vehicles of about 10%. Meaning that approximately 8 of the packers could be considered reserve on a normal basis. Ald. Kovac asked if the department had the facilities to maintain CNG vehicles. He said that regular maintenance can be done in the City garages and fuel related work is generally done outside. He added that because the trucks are so new, most of the work is done under warranty. Mr. Tews said that two projects will be undertaken, one at the Northwest garage and one at the Lincoln garage to make them NFPA compliant. Ald. Kovac asked if the department would be transitioning more of the fleet to CNG. City of Milwaukee Page 5 CAPITAL IMPROVEMENTS Meeting Minutes September 5, 2013 COMMITTEE Mr. Tews said yes. Ald. Kovac asked how much the City spends on fuel annually. Mr. Klajbor estimated $3.5 million for diesel and $1 million for gasoline. He said the actual amount fluctuates with the market price. Ald. Kovac asked if it was prudent to move forward with CNG vehicles in light of the concerns about snow plowing and the upgrades necessary to the City’s repair facility . Mr. Tews said that this was the City’s third attempt to incorporate CNG vehicles into the fleet. He said the first time was in 1980. He said that issues of vehicle power, vehicle range, and fuel accessibility have largely been addressed. He said that the CNG vehicles are being added strategically to the City’s fleet. He believes, the vehicles will be reliable, have long lives and will lower fuel costs for the City. Mr. Korban said CNG also supports the City’s sustainability goal. 5. Presentation of the Parking Condition Report. Individual appearing: Cindy Angelos, DPW-Parking Ms. Angelos and Mr. Schutten appeared to present the Parking Condition Report (please see the attachment "Parking Condition Report PowerPoint" to Council file 121406). Ms. Angelos discussed the City’s parking assets which include five parking structures, parking meters, revenue control equipment, parking lots and jeeps. She said that structural engineers annually inspect the structural components of the parking garages and surface lots and that staff from DPW Facilities reviews electrical and mechanical requirements. Mr. Schutten said that DPW Facilities has been working with Parking for three years. He said it is the longest tenured condition program that the department has. He said that each year Facilities receives the structural updates, and makes its own updates for any items that would alter the previous year’s funding plan . Mr. Schutten said that this year the asset inventory includes both parking structures and non-parking structure assets such as LUKE meters and surface parking lots. Ald. Kovac asked about the error rate on LUKE meters. Ms. Angelos said that more than 70% of LUKE meter transactions use credit cards. She said the biggest complaint is that receipts don’t always come out. She added that this was not entirely unanticipated given Milwaukee’s climate. She emphasized that the lack of a receipt does not affect one’s payment for parking. She said the newer models that are being installed are a big improvement over the original model. Ald. Bauman asked how the solar meters are performing. Ms. Angelos said they are working well and have not experienced excessive vandalism. Mr. Schutten discussed the new costs that were proposed for 2014 and beyond. Ald. Bauman asked if Parking was going to be moved from the 123 Building. Ms. Angelos said the move was requested for the 2014 capital budget. Mr. Korban said that discussions regarding the purchase of the 123 Building were ongoing and a final decision has not been made. Ald. Bauman asked if there was room at the Central Garage for Parking operations. Ms. Angelos said no. She added that the department moved out of Central Garage eleven years ago because of overcrowding. Ald. Kovac asked which surface parking lots were going to be paved. Ms. Angelos said the lot off of W. Mitchell Street near Goldman’s and the lot near Arlington and Brady. Ms. Brengosz asked if the surface lots are evaluated every year and if a system is in place for documenting their condition. Ms. Angelos said that the lots are inspected at least weekly. She said the department is starting to document the condition of the lots and will be developing an annual program to address their condition. Mr. Nicolini asked if the department has ever tried to estimate the proportion of City of Milwaukee Page 6 CAPITAL IMPROVEMENTS Meeting Minutes September 5, 2013 COMMITTEE structure users who are non-residents. Ms. Angelos said no. She added that resident status would only be available for monthly parkers – not daily users. Ald. Kovac asked if license plate readers (LPR) will be installed on all parking checker vehicles. Ms. Angelos said that LPRs will be installed on 28 of the departments 56 vehicles. Ald. Kovac asked if safeguards were in place to limit access to stored data. Ms. Angelos said that at the end of each shift the data is transferred to the server and it is restricted to use by the Police department upon request, and to DPW Parking managers. Ald. Kovac asked if the system keeps track of every license plate. Ms. Angelos said that the system does not store any identifying information beyond the license plate. She said that photos are only retained for vehicles that result in a citation. The photos may be used to resolve disputes over the appropriateness of the citation issued. Ms. Angelos said that the Police Department has their own LPR system and that they participated in DPW’s RFP process. Mr. Froh asked about the theft of the numbering plaques from the LUKE meter parking spaces. Ms. Angelos said that it is an on-going challenge. She said the department has added tags on the post. She also said that the department is working with a new vendor which will be able to provide the plaques more frequently and at a lower cost. Ald. Kovac asked how close the department was technologically to being able to implement smart pricing. Ms. Angelos replied that the department could implement smart pricing. She said that San Francisco and a few university campuses were experimenting with it. She expressed concern that effectively communicating the pricing policy to citizens would be difficult. Ald. Kovac said that the department should be thinking about how to make the City’s pricing rational for maximizing revenue and for making spots available. He agreed that communicating a new pricing policy would be challenging. Mr. Korban said that the department’s parking rate study would address that. 6. Set next agenda. The next two meetings are budget related, October 4 and October 22. Meeting adjourned at 10:54 A.M. Staff Assistant Tobie Black This meeting will be webcast live at www.milwaukee.gov/channel25. Members of the Common Council and its standing committees who are not members of this committee may attend this meeting to participate or to gather information. Notice is given that this meeting may constitute a meeting of the Common Council or any of its standing committees, although they will not take any formal action at this meeting. Upon reasonable notice, efforts will be made to accommodate the needs of persons with disabilities through sign language interpreters or auxiliary aids. For additional information or to request this service, contact the City Clerk's Office ADA Coordinator at 286-2998, (FAX)286-3456, (TDD)286-2025 or by writing to the Coordinator at Room 205, City Hall, 200 E. Wells Street, Milwaukee, WI 53202. City of Milwaukee Page 7 CAPITAL IMPROVEMENTS Meeting Minutes September 5, 2013 COMMITTEE Limited parking for persons attending meetings in City Hall is available at reduced rates (5 hour limit) at the Milwaukee Center on the southwest corner of East Kilbourn and North Water Street. Parking tickets must be validated in Room 205, (City Clerk's Office) or the first floor Information Booth in City Hall. Persons engaged in lobbying as defined in s. 305-43-4 of the Milwaukee Code of Ordinances are required to register with the City Clerk's Office License Division. Registered lobbyists appearing before a Common Council committee are required to identify themselves as such. More information is available at www.milwaukee.gov/lobby. City of Milwaukee Page 8