Finance Committee Approves Multiple Infrastructure And Utility Maintenance Contracts, Discusses Cost Savings Experienced By Multiple Projects

The Finance Committee met 02/12/2024. The item that took up the single most amount of time was the discussion regarding the proposed installation of a kayak rental station/dock at Telulah Park, an item they opted to hold for two weeks before voting on.

They did take up a lot of other items, many of which were contracts for infrastructure and utility maintenance for 2024, none of which resulted in a great deal of discussion as individual items but there was still some information of interest despite the short discussions, notably some discussion about cost savings the city was experiencing with various 2024 projects.

I’ve prepared a transcript of the discussion for download:

ITEM 24-0155: Request to approve Finance Committee Report for Preliminary Resolution 1-P-24 for Concrete Pavement, Sidewalk Construction and Driveway Aprons

This item included the pavement project for Amethyst Drive in District 13. This project had initially been slated for 2023 but was deferred to 2024 due to the overall costs for 2023’s scheduled pavement projects coming in over budget. Under the special assessment policy in place in 2023, the Amythest Drive property owners would have been assessed 75% of the cost for assessable items, but, for 2024, the policy was changed to assess property owners for 100% of the cost of assessable items. Given the fact that the project had initially been scheduled for 2023, the Common Council approved a request that the Amythest Drive property owners be assessed at the former 75% rate.  

Before the Finance Committee voted on the item, Alderperson Sheri Hartzheim called attention to the fact that the Amythest Drive residents would be assessed at the former, 75% rate.

ITEM 24-0161: Request to award Unit A-24 Concrete Paving to Vinton Construction Company in the amount of $3,847,407.27 with a 1.3% contingency of $50,000 for a project total not to exceed $3,897,407.27

The city had budgeted $4.3 million for the contract but the bid total with contingency was only $3.9 million. Alderperson Sheri Hartzheim (District 13) asked if the contract covered the entire project and was the city genuinely significantly under budget?

Public Works Deputy Director Pete Neuberger responded that the 2023 A-23 Concrete Paving contract had come in considerably higher than the city had expected. [This was what had resulted in the Amythest Drive project being postponed until 2024.] City staff had not know whether the 2023 numbers represented the new normal and so had budgeted more in 2024; however, the 2023 prices were “a little bit of a blip”, possibly the result of some of the downtown pavement projects in 2023 involving more complicated handwork that was usual. Additionally, the 2024 contract had been bid on by two companies whereas the 2023 contract had received only one bid.

ITEM 24-0171: Request to approve the following 2023-2024 Budget carryover appropriation […] Carryover positive variance from the 2023 Water Infrastructure project not under contract to the 2024 Water Infrastructure project to provide additional funds for the Z-24 project

The city had a $178,932 positive variance in the 2023 Water Infrastructure budget. Alderperson Hartzheim asked the reason for that positive variance and wanted to know if it was the result of 2023 projects having been put off. Deputy Director Neuberger responded that it was not because project were put off. Primarily, it was because they had been able to identify some funding sources other than their Water Capital budget to pay for 2023 work.

ITEM 24-0121: Request to award the 2024 Peabody Park Trail Project to MCC, Inc. in the amount of $106,661.70 with a contingency of $20,000 for a total not to exceed $126,661.70

The city had budgeted $400,000 for hardscape improvements in 2024. With contingency, the project total for the 2024 Peabody Park Trail Project was $126,661.70. Given how much less the contract was that what had been budgeted, Alderperson Fenton asked if that contract covered all of the project or was it just for design and engineering services.

Parks and Recreation Deputy Director Tom Flick said that the $400,000 that was budgeted was for two projects, the Peabody project and another one for Highview Park Trail that would probably come before the committee in a few weeks.

The Peabody Trail Project was a reconstruction project from Green Bay Street to the road that overpasses the park. They would be addressing a lot of ADA issues related to the existing trail. He also noted that there were some challenges with the soil which was why the contingency for the project was higher than usual.

ITEM 24-0169: Request to reject bids from August Winter and Sons, Inc., and Southport Engineered Systems for the Fire Station #1 and Fire Station #6 HVAC Upgrades Project

The city only had a balance of $457,020 budgeted for the project, but the lowest bid had come in at $629,200.

Alderperson Chad Doran (District 15) noted that there had been enough money saved in some of the other projects that had just come before the committee to cover the difference needed for this project. He wondered hos critical the HVAC upgrades were and whether they should be done this year to avoid increased inflation costs.

Deputy Director Tom Flick said staff was still talking with the engineering firm on their recommendation on what aspects of the project could or could not be pushed off to future years. Ideally, they did want to get both of the HVAC upgrades completed this year but they needed to do some reengineering of the project before going out to bid again which he expected to happen in around a month and a half.

Given that information, the committee was comfortable upholding the recommendation to deny the bids and wait for it to be rebid.

ITEM 24-0126: Request to award AWWTP Sludge Piping and Digester Heat Exchanger Replacement Base Bid with Alternate Bid to Rohde Brothers Inc. in the amount of $1,612,000 with 15% contingency of $241,800 for a project total not to exceed $1,853,800

Alderperson Hartzheim asked if the project was coming in under budget since the memo didn’t spell that out. Utilities Director Chris Stempa answered that it was “well under budget”. They had been able to have local contractors fabricate some equipment rather than having to go through a vendor that would have charged substantially more and that resulted in significant cost savings.

ITEM 24-0159: Request to award Unit Y-24 Lead & Galvanized Water Service Line Replacement to VanRite Plumbing Inc. in an amount not to exceed $524,896.87 and

ITEM 24-0160: Request to award Unit U-24 Lead & Galvanized Water Service Line Replacement to MRJ Inc. dba Joski Sewer in an amount not to exceed $611,302

Alderperson Denise Fenton (District 6) asked where this put the city it its lead and galvanized pipe replacement efforts.

Director of Public Works Danielle Block responded that the city would be finished with lead replacement at the end of this year. There was still a substantial number of galvanized pipes to be replaced. They were still working on identifying and verifying whether or not some buildings had galvanized pipes or non-galvanized.

This year, the city had 267 replacements scheduled and around 100 scheduled for next year. They had roughly 500 “to be determined” locations that they were still verifying whether they were galvanized or not. She expected that number to decrease significantly as they checked them out at which point she would be able to more confidently present a list of locations that needed galvanized service lines replaced.

INFORMATION ITEM 24-0124: Update on ARPA Funds

The city had budgeted $1 million in ARPA funds for lead service line replacement. Alderperson Hartzheim asked if, once the lead replacement was completed, the funds could also be used for the replacement of galvanized lines. Director of Finance Jeri Ohman said that it could, and Deputy Director Neuberger said that it was actually already part of this year’s Y-24 Lead and Galvanized Water Service Line Replacement project.

View full meeting details and video here: https://cityofappleton.legistar.com/MeetingDetail.aspx?ID=1165854&GUID=F88F8B1D-A3A0-440E-B514-B1FCA811E67B