Public Works, Sewer and Water

CITY OF VERONA MINUTES PUBLIC WORKS/SEWER & WATER COMMITTEE MONDAY, NOVEMBER 14, 2022 1. The meeting was called to order by Mr. Touchett at 5:01pm. 2. Roll Call: Present: Evan Touchett, Mara Helmke. Rye Kimmett excused. Also present: Theran Jacobson, Director of Public Works; Luke Diaz, Mayor; Carla Fisher, City Engineer, AECOM; Jon Wallenkamp, Kueny Architects, LLC; Adam Sayre, City Administrator; Brian Lamers, Finance Director. 3. MOVED by Touchett, seconded by Helmke, to approve the minutes of the October 24, 2022, meeting of the Public Works/Sewer and Water Committee. Motion carried 2-0. 4. MOVED by Touchett, seconded by Helmke, to recommend approving Professional Services Agreement with AECOM for Project ID 2022-109, Booster Station Upgrades, in an amount not to exceed $275,100.00. Motion carried 2-0. 5. MOVED by Touchett, seconded by Helmke, to recommend approval of Professional Services Agreement with Baker Tilly for Project ID 2020-111, Impact and Connection Fees, in an amount not to exceed $15,500.00 for each (water and sewer) utility. Motion carried 2-0. 6. MOVED by Touchett, seconded by Helmke, to recommend approval of Resolution R-22-049 Relocation Order and Determination of Necessity for County Highway PD Road Project. Motion carried 2-0. 7. MOVED by Touchett, seconded by Helmke to recommend approval of Change Order No. 1 and Project Closeout for Project 2022-108, Wildcat Way Water Main Project. Motion carried 2-0. 8. DISCUSSION regarding Project ID 2019-111, Public Works Facility Design. Jacobson: Jon Wallenkamp is here tonight from Kueny Architects. The last time we presented the facility design was two years ago to the Public Works Committee. I can bring up that slide presentation. The concept layout has gone through multiple sessions of staff input, including with the Planning Department and the Parks Department. The site layout has not been updated since the original presentation in 2020 because we wanted to get feedback on the overall concept. We also had a neighborhood meeting in Cathedral Point Park in August of 2021. Some of the main comments we got from the neighborhood meeting include: • Why can’t the yard waste drop-off be on the north end of the site? • The site will smell from yard waste • Lack of privacy for the surrounding homes • Hours of operation interfering with school buses, etc. • An industrial facility in a residential neighborhood isn’t ideal • Loud noises, traffic increase, no signal at Range Trail Jacobson: At minimum, we are looking at adding in additional plantings to maintain view and control noise. Touchett: I find the complaint about smell ironic given what used to happen there, and the fact the food isn’t processed there anymore. Jacobson: It currently already is the drop-off site for yard waste collected by the City, and it sits there all year except for one month. Helmke: If my house was directly behind there, I would be concerned. Are there houses there now? Jacobson: Yes. The houses were built out prior to the neighborhood meeting and the site was disclosed by Veridian. Jacobson: Regarding why the yard waste drop-off can’t be located on the north end, we went through multiple iterations with Wallenkamp. Our operational traffic with the general public is one of the main elements we are considering. Also, we’ve got a water and sewer easement on the north side of the site and we can’t build on top of that. We wouldn’t be able to segregate traffic. We are pushing that the primary entrance will be the north one. If we changed orientation, then traffic would be more towards the residences. The new Drop-Off Site will be gated. The gates will be operated by a key fob, and the gates will only be operational during open hours. We will be able to tell who has used the facility. That will hopefully decrease residents dropping off items that are not allowed, which is a current problem. Touchett: I am curious about the aesthetics of the outside of the building. How expensive is this? Wallenkamp: The larger building would be proposed as some sort of pre-cast with decorative aggregate stone. I would recommend building this way. You could go with a pre-engineered building, but then you don’t have a 75-year building. It’s all the different pieces that go into this that we can show cost/payback analysis so people can feel comfortable. There are plenty of other communities that have built on this level. You can see on the current slide what the residents will see from their homes. Essentially, it is a berm, vegetation, and then the view skates over the facility. Jacobson: The overall garage layout maintains space for four stalls for future capacity expansion. We want to stay on budget but also allow for expansion after the 25-year mark, or whenever needed. We want to have expansion capacity, so we are not immediately full in a new build. That is also what we did with the office design. We have an alternate build, so it can be designed but doesn’t have to be built right away. There are multiple alternatives with costs. Wallenkamp: We have laid it out two different ways. We can do what we call “shell it,” and then later build the interior walls. There are multiple alternatives so you can see the cost. We’ve got cube space in the middle. Jacobson: Without the alternate added space, there would only be one spare office. Wallenkamp: You don’t save the full improvement cost of that alternate area space if it is removed as an alternate. For example the full cost is $240 sq ft but the alternate would save $80/sq foot not building the added space, but the electrical is the same either way, the water is the same. If you looked at cost, does it make sense for the next 50 years to do so? Jacobson: Jon provided an updated estimate. I’ve had $15.5 million in the budget with using a 2% inflation from the 2017 space need study. The inflation from the building side since 2017 to present is 4% and there has been a 25% increase in 2022, with inflation and all the soft costs it comes to $24.5 million. Touchett: My gut says that within the next five to ten years even if you’re going to need those extra spaces, could we have this building paid off in the next 25 years? If so, we could take out another bond if you need that space then? Jacobson: 20 years is bonds. Jon, could you talk about some of the cost saving measures? There’s cold storage and then there’s also mezzanine storage. There are options out there to look at. Wallenkamp: I’d rather make this primary box a little bigger and build that outbuilding later (cold storage). Diaz: What would $24.5 million in our budget look like? Sayre: We would have to go to public referendum or take a limit adjustment for debt. So now we are talking $24 million over 20 years and then we get total payments on that debt close to $37 million. Further reason this got pushed back is that we had debt dropping off in a couple years. Obviously with numbers significantly higher, rates are higher too. And for an average home in the City, which is $400,000, that would be an extra $180.00 for them. Touchett: And for 20 years, that will never go off. Lamers: Your levy limit that you’re stuck at for the debt, you can actually take a levy limit adjustment, but then as you pay it off, that adjustment better be decreasing too, because by the time you get this paid off, you don’t want to take that for something else. Touchett: What other choice do we have? Sayre: You have a choice of trying to get the project done, trying to split the costs, choice of going to referendum. Touchett: What does going to referendum really do? It just means we don’t build it and we’re stuck. Sayre: Going to referendum, this will be by far the most expensive facility we’ve built. Obviously different times, different construction costs. But it is a pretty big pill to swallow. Touchett: I have no desire to take this to referendum. Helmke: I am curious as to what other communities around us have done?  Wallenkamp: Dane County, Madison, Dunham, Cedarburg, Grafton, Mequon have all built new facilities. Even two years ago, people still cared about the money and spending. They all had the same conversations we’re having. You guys need to analyze when you need the building. Going to 2028 doesn’t make the building cheaper. Helmke: We need this facility in the next x years and we can’t just kick the can forever. Jacobson: We have no extra space. The drive aisles, the wash bay, the mechanics room all have vehicles parked in them. Wallenkamp: In 2008, when this happened, it wasn’t like those original inflation numbers tanked and went away. They flattened out, and then just continued with normal inflation. I can’t sit here and tell you that the 15-20% increase will come back down. Probably not, historically. Diaz: Can it be staged? Do phase one, wait a few years. I’m not 100% convinced we should get rid of the old building. Because of how expensive everything is, there is no way we could sell it and make a new building. Wallenkamp: We show you phases. It’s going to cost you more, but at least everyone knows that up front and will have decided based on knowing that. Sayre: We will have to talk with finance to see how this would look. You can bite off the full $23 million, I’m not saying you can’t. I’m not saying it’s pretty, either. Wallenkamp: We’re here to help you try and come up with a plan. Sayre: If we looked at a 1-2-3 phase, what would that look like? We need to start plugging in those numbers so we can get a good understanding of the financial picture. Is there a way to split it out? Then, coming back to this committee, and then quickly to the finance committee next year. Jacobson: What are some phasing approaches you’ve seen with some of your other clients? Wallenkamp: I’m going to analyze it. We’ll have to look at the operational chart and see how we are gaining by phasing, and how we are costing more by not being efficient. Sayre: Once we get a game plan in place, once we get options with cost, probably two days to look at it and then get it to finance. Jacobson: I would like to get this through in quarter one so we can get to a point when we’re comfortable and start the planning submittal process to go through site plans so we can be ready in 2025, as that’s the target bid. 9. MOVED by Touchett, seconded by Helmke, to adjourn at 6:14pm. Motion carried 2-0. Note: These minutes were prepared by Theran Jacobson, Director of Public Works. These minutes are based on the notes of the recorder and are subject to change at a subsequent meeting.