CAPITAL IMPROVEMENTS COMMITTEE

200 E. Wells Street City of Milwaukee Milwaukee, Wisconsin 53202 Meeting Minutes CAPITAL IMPROVEMENTS COMMITTEE ALD. ROBERT BAUMAN, CHAIR Ald. Nik Kovac, 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 Monday, April 18, 2016 10:30 AM City Halll, Room 301-B 1. Review and approval of the minutes of the March 2nd meeting. Meeting convened: 10:40 A.M. Members present: Ald. Kovac, Martin Matson, Mark Nicolini, Gerard Froh and Ghassan Korban Members excused: Ald. Bauman Mr, Korban moved for approval of the minutes. There were no objections. 2. 151692 Communication transmitting the 2017 Capital Improvements Budget Requests. Sponsors: THE CHAIR Mr. Nicolini presented an overview of the 2017 capital requests. He said that levy supported requests total almost $125 million. He said that there was $44 million in self-supporting tax increment financing and $44 million in grant and aid funding. Cash revenues, which include the transfer from the Sewer Maintenance Fund (SMF) for Forestry programs is $15.2 million. He said special assessments are only $1.4 million because of the motor vehicle registration fee. The total is $229.2 million for general city supported request. The Parking fund requested $6 million, the Sewer Maintenance Fund requested $41.7 million, and the Milwaukee Water Works(MWW) requested $29.2 million. Mr. Nicolini said the Budget Office has developed a draft capital improvements plan (CIP). He said the plan was based on work that could be accomplished with a commitment to a $3.5 million annual debt level increase. He said the targets have not been finalized. He said the lower level of borrowing in 2017 compared to 2016 was achieved primarily by lowering the core infrastructure levels. Mr. Nicolini said that debt level has been creeping upward primarily due to facility projects, the Strong Neighborhoods program, and other priorities. He said some of the increase was handled through liquidity in the debt service fund. He said that if debt was sustained at a $90 million to $94 million dollar level, the City would be in danger of getting considerably out of balance. Mr. Nicolini estimated the effects of different levels of debt on the 2022 debt levy. Annual borrowing authorizations at the 2016 level), the CIP target level, and the requested level, would increase the 2022 debt levy by $40 million, $23 million, and $100 million respectively. Mr. Nicolini said the Budget Office has been looking at ways to moderate the tax levy impact of capital projects. Mr. Matson said that the City retires between $70 million and $80 million of debt every year. He said his office will be segregating the TID increments in the debt service fund so there will be a clearer picture of the effects of increased debt. Mr. Christiansen discussed the four main categories of requests; Facilities, IT City of Milwaukee Page 1 CAPITAL IMPROVEMENTS Meeting Minutes April 18, 2016 COMMITTEE projects, Strong Neighborhoods programs, and core infrastructure. He said facilities requests total $42 million. In 2016 $27.1 million was budgeted. Key projects include the City Hall Foundation Phase 2, the Police Administration Building (PAB), branch library construction, the 8th floor of City Hall, and ADA Compliance. Mr. Nicolini said the target should be as close as possible to $27 million. Mr. Christiansen said there were $9.5 million in IT project requests. Key projects include the Police record management system (RMS), other police IT projects, the FMIS upgrade, and assessment software. IT project request are relatively stable from last year. Request for Strong Neighborhoods programs totaled $5.25 million. In 2016, $6.5 million was budgeted. Mr. Nicolini said big variables include the Code Compliance Loan program and demolitions. DPW’s core infrastructure requests total $54.3 million. In 2016, $40.5 million was budgeted. Mr. Christiansen said the requests continue the shift from local streets to high impact. Rich Watt discussed the capital request for the Dept. of Administration – ITMD. The largest request is for an upgrade to the City’s financial management system (FMIS). Mr. Watt said that because of the customizations in system, upgrades are usually done every 6 or 7 years. He said the department is continuing to replace network switches. The department is requesting funds to replace the backup system for City records and data. The department is requesting a new project to address Dept. of Revenue digital data requirements for the Assessor. This project will interact integrate with the Assessor’s new computer aided mass assessment (CAMA) system that currently being developed. Steve Minor discussed the capital request for the city Assessor. The only request is the continuation of the development of a new CAMA system. David Piedt discussed the capital request for the Health Dept. The request includes $150,000 for equipment. Mr. Piedt said that typically grant funding would be used for this type of equipment, but grants have been unavailable. Sheldyn Himle discussed the capital request for the Municipal Court. The 2017 request includes $384,000 for the Court’s CATS system. Grant Langley discussed the capital request for the City Attorney. The request included $3.5 million to complete the renovation of the 8th Floor of City Hall. He said their current temporary space in the ZMB is adequate, having been designed for a two year stay. The City Attorney’s office has been displaced for 10 years. Mr. Withers said that the cost to remodel the 7th floor of the ZMB to accommodate all City Attorney staff would be $3.5 million. Additional cost estimates for the relocation of all affected staff range between $1 million and $10 million. Mr. Korban said putting the City Attorney permanently on the 7th Floor of the ZMB would be very disruptive to several departments. Jim Owczarski discussed the capital request for the City Clerk. He said no additional funding is required for the digital conversion of Channel 25. Ald. Kovac asked what the funding for Room 205 would include. Mr. Owczarski said that requested funding would address only the four greatest needs; upgrades to HVAC and electrical systems, conference room space, safety improvements to the reception area, and improvements to the audio visual systems for meetings. David Schroeder discussed the capital request for the Department of City Development. Mr. Schroeder said that the department is working to expand the BID program beyond streetscaping to include other economic development projects. Ald. Kovac requested a list of businesses and the awards they have received. Mr. Nicolini said that DCD programs are intended to have an aggregate effect on neighborhoods Tom Mishefske discussed the capital requests for the Dept. of Neighborhood Services. He said that both requests fall under the Strong Neighborhoods program. He said the need for demolitions is far greater than the funding requested would provide. Regarding the Code Compliance Loan program he said in 2015, 34 loans were closed, the average loan was for $12,300 , the median property assessment was $50,800, average length of ownership was 18 years, average income was $19,500, and half of the recipients were on a fixed income. City of Milwaukee Page 2 CAPITAL IMPROVEMENTS Meeting Minutes April 18, 2016 COMMITTEE Paula Kiely and Duane Webking discussed the capital requests for the Library. Mr. Webking said the development of branch libraries is continuing. He anticipated construction of all four branches would be complete by 2020. Mr. Nicolini asked if all three air handlers at Central needed to be replaced at once. Mr. Webking said yes. He said the removal of the air handlers from the roof will require a significant craning operation and may require the removal of a wall in the penthouse of the Library. Paul Vornholt discussed the capital request for the Port of Milwaukee. He said the Port has been able to leverage $1.3 million to replace rail track. He said two tenants are interested in using the new Lake Classification yard. He said the Port has been evaluating facilities to determine if they should be repair or demolished. Chuck Burki and Rick Moore discussed the capital requests of the Police Department. The department has requested $9.5 million for facilities and $4.9 million for IT projects. The 2016 capital budget was $9 million. Regarding the digital asset management system, Ald. Kovac asked if detectives process crime scene photos. Mr. Burki said photo processing is done by sworn staff in the ID section. Mr. Burki said that two more radio sites are required and then the system will be complete. He said the Police Department is utilizing DPW for the uninterruptable power supply project. Regarding the video conferencing system upgrade, Mr. Burki said that eventually it will turn into a subscriber service and be funded by the operating budget. Mr. Moore discussed building projects. He said that all police districts with the exception of District 4 have shower facilities. He said the replacement of a floor drains in the garage cost more than expected because the drains had to be disconnected from the storm sewer and reconnected to the sanitary sewer. Mr. Chuck Schumacher discussed the capital request for the relocation of the Industrial Road yard. Mr. Krause said the design estimate was based on the department’s experience with the construction of the Field Headquarters (35th & Capitol). Mr. Nicolini requested the estimated number of design hours for the project. Mr. David Sivyer discussed the capital request for Forestry. He said the number of trees lost to paving projects is slightly lower than average and the number lost to mortality is slightly higher than average. He attributed the increased mortality to an aging Norway Maple population. He said the department is considering a three year cycle for inoculating ash trees because of a shortage of interns. He said maintaining the 2 year cycle would require using Urban Forestry Specialists which would increase the cost. Mr. Sivyer presented the results of an extensive EAB survey done over the winter. He said that 20% of all quarter sections have evidence of flecking or exit holes that are indicative of Emerald Ash Borer infestation. He said that based on the age of the City’s infestation, we should be seeing ash mortality in 20% of the trees but it is not that high yet. He said that is likely due to the suppression effect of the inoculation program. He said the department would like to expand the hazardous tree program to include staff related to contract solicitation, inspection and reporting. He said funding of $200,000 would pay for removal at 325 properties. An additional $165,000 is requested for salaries. Mr. Sivyer said the department anticipates reducing the stump backlog to fewer than 500 by 2019. Wanda Booker discussed the capital request for Sanitation. The only project requested is the continuation of the brine maker installation project. She said the department anticipates saving approximately 10% on salt usage once the installations are complete. Jeff Tews discussed the capital request for Fleet. He said the City has seen considerable savings from the use of CNG vehicles. He said savings are down somewhat because of the current low cost of diesel, but that low prices are not expected to last. Jeff Polenske discussed the capital requests for DPW – Infrastructure Services. He said construction on the South 1st Street Bridge was expected to start after Summerfest in 2017. He said substantial work will need to be done in 2017 and 2018 to comply with the Dept. of Justice requirements. He said there is currently a two City of Milwaukee Page 3 CAPITAL IMPROVEMENTS Meeting Minutes April 18, 2016 COMMITTEE year wait for scattered site sidewalk replacement. Mr. Polenske said the department will continue with high levels of high impact projects in 2017 and return to more conventional treatments in 2018. Mr. Polenske said that the department has begun upgrading lamps from high pressure sodium to LEDs. He said a product has been developed that gives the same lighting coverage without having to move or add poles. He said that in the traffic control program, the department has begun doing more proactive evaluations of the geometrics of intersections to make them safer. Mr. Rollin Bertan said that the control circuit replacement program is about 20% complete. Mr. Froh asked about railroad bridge condition information. Mr. Polenske said that there is better communication with the railroads. He said there are new ways to request information, but the reports are not very detailed. Mr. Korban said that railroads are now required to post the load capacity of their bridges. Tim Thur discussed the capital requests for the Sewer Maintenance Fund (SMF). $31 million has been requested for sewer relay and rehabilitation. He said the preliminary program has 9.3 miles of sewer proposed. Two large diameter projects are reducing the annual mileage. He said one of the projects may be delayed which would allow more miles of smaller sewers to be completed. He said the program will be finalized by October. Mr. Thur said there are 16 areas that are non-compliant with respect to inflow and infiltration. Carrie Lewis discussed the capital request for the Milwaukee Water Works. She said $23 million is requested for water mains, which will replace about 15 miles of water main. It will also fund hydrant alterations required on state paving projects. She said that main breaks per 100 miles of mains have been trending downward for at least 10 years. She said funding for non-main projects tends to be variable. She said the improvements to the Lincoln tanks have been delayed because of contamination in the soil that needs to be mitigated. The department intends to hire a consultant to assist with the mitigation. Ms. Lewis said the installation of back power at the plants facilities is complete. Ms. Lewis said the request does not include the replacement of lead water services. She said the department is developing a long term replacement strategy. She said water main replacements in areas with lead services are being postponed. She said the water mains that are breaking the most were installed between 1945 and 1965. The installation of lead services stopped around 1950, so the City is not losing a lot of ground with respect to reducing main breaks. Tom Woznick discussed the capital requests for the Parking Fund. Mr. Woznick said that repairs at MacArthur Square need to be made before the Dept. of Transportation project, which is scheduled for 2019. Mr. Woznick said that the department could replace all single space meters with smart meters in 2017. He said that technology advances in the parking industry make it a good time to replace the access and revenue control equipment. He said the installation of smart meters and the expansion of the license plate reader technology to all parking jeeps will allow the department to analyze on street parking and how it can serve the city. He said the goal is to provide available parking. John Litchford discussed the capital requests for the Fire Department. He said the revised purchasing formula for major capital equipment could provide savings of 18% over 5 years. He said the 2017 request includes five vehicles; 2 med units, 2 engines and 1 platform. He said the department currently has two platforms. They are both 11 years old. Mr. Litchford said that proposed improvements at the fire repair garage include, the construction of a women’s locker room, the addition of vehicle storage, window and boiler replacement, and the installation of additional bay doors. He said the addition of vehicle storage would reduce changeover time from 3 hours to one half hour. He said that 45% of windows are broken, cracked or have rusty frames. The boiler was installed in 1928 and is original to building. Mr. Litchford said it costs almost $5,000 to rekey the whole system. He said the department received three quotes for the access card system. City of Milwaukee Page 4 CAPITAL IMPROVEMENTS Meeting Minutes April 18, 2016 COMMITTEE Meeting adjourned: 3:16 P.M. 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 5