The Fox Cities Transit Commission met 02/20/2023 and approved three action items related to the Whitman Avenue Facility Redevelopment Project. Back in 2021, this project had initially been estimated to cost between $6.5 and $7.6 million. Inflation and economic factors have since caused its cost to more than double.
As Valley Transit General Manager Ron McDonald explained to the commission on Monday, this increase in cost has resulted in them splitting the project into two phases because they did not have enough funds to complete it all at one pop. Phase One of the project will be covered 100% by federal grants. If Valley Transit is successful in its grant applications, 80% of Phase Two will be covered by federal grant dollars while 20% would be made up for in other ways, either through funds from local municipalities or a private developer or grants that can be used to pay for local cost-shares.
I’ve prepared a complete transcript of the discussion for your downloading pleasure.
ITEM 1: Request to approve Acceptance of Federal Transit Administration FY 2021 American Rescue Plan Act (ARP) grants of $3,370,750 and $32,147 and Coronavirus Response and Relief Supplemental Appropriations Act (CRSSAA) grant of $32,146
This item was passed with nominal discussion. The grants had been awarded to Valley Transit and this vote was simply to formally accept the money. Per the memo regarding the item, the funds could be used for capital and operating project [which would include the Whitman Avenue Facility], so they intended to use them for capital projects included in the 2023 budget with any remaining funds put toward projects in the 2024 budget.
ITEM 2: Authorization to Award Whitman Facility Remodel Phase 1 Construction Project to SMA Construction Services LLC
SMA was the lowest bidder at $6,705,000. With a 5% contingency added, the total contract was not to exceed $7,040,250. [Which had been right around the initial estimate for the entire project, but now only covers the cost of Phase One.]
Jon Wallenkamp of Kueny Architects, the firm that created the Whitman Avenue redesign, briefly ran through some PowerPoint slides showing what Phase One would entail.
Phase One would include:
- An expanded parking lot
- The building addition to expand the administration area
- A new area to house future paratransit vehicles
The deadline for construction to be completed on Phase One was just under a year.
Phase Two would include:
- A complete gutting and remodeling of the existing administrative/office space including new electrical and HVAC
- Upgrading of the repair bay including additional mezzanines and additional electrical
- The installation of a geothermal system
General Manager McDonald noted that the geothermal system would be important in controlling their ongoing costs. It would cost more upfront to install but it would save money in operating costs for the remainder of the life of the building.
He also mentioned that the current solar panels on the building had exceeded their life expectancy so they would be adding new solar panels. They would also be adding a tank to capture rainwater to be used for washing buses.
Finally, he highlighted the fact that the costs for Phase One of the project would be covered entirely by federal grant dollars and would not cost the local municipalities anything. [So, still covered by tax dollars, just in a more roundabout way.]
ITEM 3: Request to approve Submittal of Applications for Fiscal Year 2023 Federal 5339 (b) Funds for $12,000,000 for the Whitman Facility Remodel Phase 2 and $25,254,700 for the Downtown Appleton Joint Development Project
Valley Transit was essentially just seeking permission to apply for this grant. They had already received permission to apply for a RAISE grant for the downtown Transit Center Joint Development Project, and they were now wanting to apply for this grant also in the hopes that they would be awarded at least one of them. They wanted to apply for $12 million for the Whitman Avenue Facility and a little over $25 million for the transit center.
This particular grant was an 80/20 grant which mean that the grant would cover 80% of the project costs while the remaining 20% were supposed to come from local sources. General Manager McDonald explained, however, that that 20% local portion did not necessarily have to come from tax dollars. There were other potential grants that could be used to offset the local share as long as it was allowable by the Federal Transit Authority. Valley Transit also had a depreciation account that they could use for capital projects. In regards to the transit center mixed-use development project, he noted that they intended to get a joint development agreement with a developer who would pay for the lion’s share of the local cost.
All three items were approved unanimously.
View full meeting details and video here: https://cityofappleton.legistar.com/MeetingDetail.aspx?ID=1063053&GUID=57A801F6-20AB-4045-A0B7-6FE05215372A
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