CAPITAL IMPROVEMENTS COMMITTEE

200 E. Wells Street City of Milwaukee Milwaukee, Wisconsin 53202 Meeting Minutes CAPITAL IMPROVEMENTS COMMITTEE ALD. ROBERT BAUMAN, CHAIR Ald. Milele Coggs, Ald. Mark Borkowski, Ghassan Korban, Martin Matson, and Mark Nicolini Staff Assistant: Linda Elmer, 286-2231 Fax: 286-3456, lelmer@milwaukee.gov Fiscal Planning Specialist: Kathleen Brengosz, 286-3926, kbreng@milwaukee.gov Friday, April 22, 2016 9:00 AM City Halll, Room 301-B 1. Discussion of and recommendations for the 2017 Capital Budget Requests. Meeting convened: 9:15 A.M. All members present, except Ald. Bauman. The committee discussed the capital requests for the 2017 budget and made funding recommendations. The committee’s default recommendation was the amount requested by the department. Ald. Kovac acknowledged that the judgement exercised by committee members in regard to the recommendations may be different from the judgement you exercised by members in other official capacities. Mr. Nicolini pointed out that only modest amounts of analysis had been completed to date and that analysis of the requests would continue throughout the summer. Ald. Kovac said that the City retires $70 million and $80 million of debt every year so the truly sustainable number is between $70 and $80 million. He said that the target for 2017 would likely be a little higher. Mr. Froh commented that when comparing the 2016 Budget to the 2017 requests, adjustments need to be made for certain items. These items include grant and aid funding and the parking fund reserve. The committee recommended funding of $50,000 for the Municipal Art Fund. Ald. Kovac proposed the increase amount to support art at newly constructed libraries. The committee recommended $400,000 for the Housing Trust Fund. The committee recommended funding as requested for the Dept. of Administration ITMD. The committee recommended funding as requested for the City Assessor. The committee discussed the renovation of the 8th Floor of City Hall. Requested funding was $3.5 million. Ald. Kovac noted that there are several office renovation requests and that those types of projects generally do not have a direct impact on the public. Ald. Kovac asked if a comprehensive space plan had been developed. Mr. Korban said that a plan of that type was not funded. Mr. Nicolini said he would prefer to approve building projects on a case by case basis. Mr. Korban agreed saying that it was a more manageable and realistic approach. Ald. Kovac asked if the design had been revised to remove the cubicles from the former law library. Mr. Korban said that he was not aware of any revisions to the plan, but that the department was aware of Ald. Kovac’s concerns. The committee funded the renovation as requested. The committee discussed the building projects recommended by the City Clerk. Mr. Matson expressed concern about the electrical system in Room 205. Mr. Korban said he would have staff inspect and evaluate the system. The committee agreed that the projects needed to be done, but that they were not as urgent as the 8th Floor and the City Hall Foundation project. Mr. Korban said that after the completion of Phase 2 of the City Hall Foundation project, there may be an opportunity to suspend additional phases for a year or more. The final engineering evaluation to determine the feasibility of that option has not been completed yet. The committee did not City of Milwaukee Page 1 CAPITAL IMPROVEMENTS Meeting Minutes April 22, 2016 COMMITTEE recommend funding for Room 205 or Room 307 in 2017. The committee will discuss the specific timing of the projects at a future meeting. The results of the DPW evaluation may alter the committee’s recommendation. The committee discussed the requests from the Dept. of City Development. Mr. Nicolini said that more data would be available later in the year to inform budgeted amounts for most of DCD’s programs. He cautioned against making recommendations based on fund balances early in the year. He suggested that overall neighborhood impact be considered when evaluating programs. The committee did not make changes to the requested amounts. The committee discussed the requests from the Fire Department. Mr. Nicolini noted that the contract for Local 2015 is in arbitration. He said the results of the arbitration could have an impact on how much funding is available for Fire Department projects. Mr. Froh suggested deferring the key card access system. Mr. Korban said that a dedicated source of funding for building condition assessments could be beneficial. The committee supported improvements to the fire repair shop if they were relatively short term in nature. The committee requested more information from the department regarding their long term plans for the fire repair shop. The committee discussed the capital request from the Health Department. Mr. Nicolini suggested looking for alternate funding sources for requested equipment. He also suggested limiting the department’s capital budget to items that had a more conventional useful life of 10 years or more. The committee discussed the capital request from the Library. Mr. Nicolini said more information relative to the risk of failure for the air handlers at Central Library would be necessary. Ald. Kovac said he would like to keep the branch library construction on track because the City is partnering with private investors. Mr. Nicolini said that because of the way projects are being phased, the request for branch library may include funding that the City is already committed to. Mr. Nicolini noted that the request for improvements to the Center Street Library address operational concerns. The committee recommended funding for the Municipal Court as requested. The committee discussed the capital request from the Dept. of Neighborhood Services. Mr. Nicolini said it would be helpful to separate the commercial demolitions from the residential. Mr. Nicolini said that the Code Compliance Loan program has great cost avoidance potential. He said the average annual carrying cost to the City is $2,000 for an improved property. Average residential demolition costs are $15,000. He said it was important to understand the neighborhood impact. The committee discussed the capital request for the Police Department. Mr. Christianson said that of the funding requested for a garage floor drain ($600,000) had actually been included in the 2016 Budget. The committee recommended funding of $7 million for the Police Administration Building (PAB) and $1 million for District Station repairs. Funding of $2.5 million was recommended to complete the record management system. No funding was recommended for new IT programs. The committee recommended funding the Port of Milwaukee as requested. The committee discussed the requests for DPW Operations. Mr. Korban said that funding in 2017 for the Industrial Road yard would be used for planning and designing the new yard and would be considered part of the total cost. Mr. Nicolini said the TID plan provided that Direct Supply would absorb 50% of the project cost up to a ceiling of what was originally $4.7 million. The final amount will be adjusted for inflationary factors. The committee discussed the request for DPW – Infrastructure Services. Ald. Kovac said that streets are one of the biggest areas of constituent dissatisfaction. Mr. Nicolini said a small portion of the Major Street request may be redundant because some CMAQ projects were funded in the 2016 Budget. Ald. Kovac said the request for street reconstruction and high impact paving was consistent with prior years. Mr. Froh said that the City’s underground conduit system is used by other entities. He said that expanding the conduit system could increase competition among third parties, but that it would not be cost effective for the City. Mr. Korban said the City City of Milwaukee Page 2 CAPITAL IMPROVEMENTS Meeting Minutes April 22, 2016 COMMITTEE has not constructed facilities solely to have them available for future leasing. The committee discussed facility projects. Mr. Korban said the $2 million for the ADA Compliance program was consistent with the settlement the City signed with the Dept. of Justice. The ADA coordinator and the independent licensed architect (ILA) are expected to be financed through the operation budget. Mr. Korban said the City has three years from the signing of the settlement to complete the required work. Mr. Korban said that the purpose of the recreational facility funding was to provide the local match to private raised funds. The committee discussed the Parking Fund. Mr. Nicolini asked for more detail on the Revenue & Access Control project. Mr. Korban said the project would provide greater efficiency and that it coincides with the expiration of the management contract for the four structures. Mr. Nicolini said projects must be carefully evaluated because the parking fund provides considerable support to the general fund and is anticipated support for the street car operations. Ald. Kovac said there is real opportunity to make more money with the parking fund. He acknowledged that it may be unpopular. The committee discussed the capital request for the Milwaukee Water Works (MWW). The total request is $29.2 million. The request does not include funding to replace lead water services. Mr. Nicolini said the requested amount would keep the department on track with replacing with respect to the goal of replacing 15 miles of water main and moving toward 20 miles of annual replacement. The committee recommended funding MWW as requested. The committee discussed the Sewer Maintenance Fund (SMF). The total request is $41 million. Mr. Nicolini asked what types of projects would be done to improve water quality. Mr. Korban said mostly bio-swales and porous pavement. He said the department is researching other technologies and features. He said the department may pilot the use of floating islands to absorb pollutants. Mr. Froh asked for historic backwater information. The committee recommended funding the SMF as requested. Meeting adjourned: 11:01 A.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 3