The Common Council met 03/15/2023. 3 items from the Finance Committee were separated out for individual votes. These were the three infrastructure maintenance projects that were discussed during the committee meeting, the wastewater treatment plant hardscape project, the 2023 concrete pavement projects, and the 2023 asphalt pavement projects. All of these projects cost more than was budgeted for them, so city staff recommended various ways to deal with those issues.
- The waste water treatment plant hardscape project had funds reallocated from the roofing project and the roofing project was put off until next year.
- The 2023 concrete paving project was reduced in scope with the pavement of Amethyst Drive rescheduled for 2024. The spending authority in TIF District 11 was increased by $1 million. Funds were reallocated from the 2023 Lightning Drive stream crossing/pond construction project, and that project would be re-budgeted in 2024.
- The asphalt paving project was reduced in scope with the paving of Helen Street being postponed to and re-budgeted for 2024.
The waste water treatment plant project was approved unanimously, but both of the paving projects were approved by votes of 13 to 2 with Alderpersons Sheri Hartzheim (District 13) and Chad Doran (District 15) voting no after expressing concerns about the city putting off needed infrastructure projects.
I’ve prepared a complete transcript of the discussion for your downloading pleasure.
Three Appleton residents appeared and spoke at the public hearing related to the concrete paving project. They expressed concern about the paving of their street being put off until next year. The street currently was very dirty and had drainage issues due to the city covering the sewer grates. This street was also a new street for which they would be charged a special assessment when it was paved, and they were concerned that the cost of paving (and, therefore, the amount of their special assessments) would be higher in 2024 that it would have been if the street had been paved in 2023 as initially planned. One of the residents expressed some concern or frustration over their inability to get an estimate of what their special assessment would be as well as the lack of communication regarding the postponement of paving of Amethyst Drive.
The Council took up the three items.
WASTEWATER TREATMENT PLANT HARDSCAPE RENOVATION PROJECT
The city had $414,000 available for the project, but the lowest bid from Vinton Construction Co, was approximately $500,000. With a 12% contingency, that rose to a project total of approximately $560,000. City staff was recommending that $150,000 be reallocated to the hardscape project from the wastewater treatment plant roofing project. The scope of the roofing project had been modified and the estimated cost for that project had increased, so they were already planning to re-budget for that project in 2024. Because they were going to re-budget the roofing project, staff thought it appropriate to reallocate the $150,000 to the hardscape project.
Alderperson Hartzheim was concerned about the poor condition of the roof and wondered if it would be possible to still do the roof replacement project this year. She asked if there were American Recovery Plan Act (ARPA) funds available that could be reallocated for this or possibly some other way to finance it.
Finance Director Jeri Ohman said that if they reallocated ARPA funds, they would have to move them from one project to another.
Director of Parks, Recreation, and Facilities Dean Gazza agreed that the roof was in poor condition and needed to be replaced; however the cost was going to be greater than they had originally expected and, regardless of taking away $150,000, the project was going to be delayed until 2024 because they needed time to redesign it, re-budget it, and get new estimates. He also noted that, while the roof was in poor condition, they did not expect it to get worse during the time of the delay, nor did they expect to have any damage to the facility. Additionally, the $150,000 was only a portion of what had originally been budgeted for the project, not the full amount that had been budgeted.
The Council voted 15-0 to approve the contract for the Wastewater Treatment Plant hardscape renovation project and reallocate $150,000 from the roofing project to the hardscape project.
THE A-23 CONCRETE PAVING CONTRACT
Alderperson Hartzheim expressed concern that “this is another Appleton project that’s being put off,” and reiterated the point raised during the public hearing that the costs were simply going to increase by delaying it a year. “I’m still concerned pushing those things off just means that there’s an added expense somewhere in next year’s budget. And we can’t just keep robbing Peter to pay Paul.”
Alderperson Doran had a technical question about how increasing the spending authority in TIF District 11 by $1 million would work. [Frankly, I don’t understand how TIF’s work. I’ve read about them numerous times in an attempt to gain an understanding, but they still make no sense to me. Therefore, this entire conversation did not make sense to me, so I’m just going to copy and past his questions and Director Ohman’s answers.]
Alderperson Doran: So, at the end of the life of the TIF there, you know, we always hope there’s a positive balance in there. My understanding is some of that that that gets spread out among amongst all the taxing entities that are part of the TIF. And I guess I’ve just never really maybe thought of it this way, but for us taking advances out, is that just taking advances out of our portion of what we expect that revenue to be, or how does that, how does that work, I guess in the end when the TIF gets closed?
Director Ohman: The expenses and the revenues accumulated during the life of that TIF, when the TIF is closed, any excess balance is distributed amongst all of the jurisdictions. It’s not, it’s not taken from any one of the jurisdictions. It’s shared proportionately.
Alderperson Doran: What we take out now, you know, for expenses is, it’s always sort of been in the process and, and allowable. So, it’s not taking necessarily from what could be left over at the end, correct?
Director Ohman: That is correct.
Alderperson Doran agreed with the concerns Alderperson Hartzheim had voiced. He believed they were making the city’s infrastructure problems worse by pushing off projects. “It just keeps pushing us further behind. And all of these projects end up costing more. And I think at some point we have to take a stand and find a better way to do this and continue—and not continue pushing projects off to do these things. One of our core responsibilities for our community is providing infrastructure, and if we don’t have the means to do that, then I think it’s incumbent upon us to find other areas to cut from to make that happen because it is one of those core functions of what we do.”
The Council voted 13-2 to approve the A-23 Concrete Contract with Alderpersons Hartzheim and Doran voting against.
THE B-23 ASPHALT PAVING CONTRACT
This one was not discussed in detail because the concerns mirrored those of the B-23 Concrete contract, with Alderperson Hartzheim stating, “Rewind; replay. I’m just concerned about pushing off projects such as this. Thank you.”
Again, the Council voted 13-2 to approve the contract with Alderpersons Hartzheim and Doran voting against.
View full meeting details and video here: https://cityofappleton.legistar.com/MeetingDetail.aspx?ID=1084562&GUID=A437A6A1-7C4C-461F-93A2-32BA67B91CF6
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