Building Needs Assessment Work Group Minutes

June 2, 2022 10:00 a.m. – 12:00 p.m.

Hybrid Meeting: In person at 4610 S. Biltmore Lane, Chester Room

Meeting Documents: https://www.scls.info/committees/building-needs-assessment-work-group

Present:

Corey Baumann          SCLS Delivery Services Coordinator

Nan Brien                    SCLS Board Trustee

Kerrie Goeden             SCLS HR & Finance Coordinator

Jean Anderson             SCLS Consulting Services Coordinator

Jesse Stewart              SCLS Fleet Manager

Vicki Teal                     SCLS Technology Services Coordinator                                  

Kristi Williams             SCLS Board Trustee – absent              Proxy by Susan Feith

Martha Van Pelt               SCLS Director
Guests:

Devin Flanigan               Keller Inc. Project Manager

David Haug                     Lighthouse Realty

Deb Haeffner                 SCLS Consultant

Rob Lindstrom                Keller Architect

Call to Order by K. Goeden 10:00

Approval of previous meeting minutes:  May 19, 2022

a.         Motion by J. Stewart to approve the minutes 

b.         Second by J. Anderson

c.        Approved

Discussion: Agenda was rearranged to accommodate R. Lindstrom’s availability

· Review needs assessment with R. Lindstrom

o K. Goeden shared a floor plan of the new build with the must haves as determined by the staff,  showing that we can’t shrink the building to a $7 million size and keep the must haves

o R. Lindstrom offered to square the building which may reduce costs

§ Delivery: Remove 1 van space, 1 office and its matching 12’ through the sort floor.

§ K. Goeden will send R. Lindstrom all the notes from the teams’ must have lists

§ Discussed sharing offices and “hotel” space after removing several dedicated offices.

§ R. Lindstrom will draft a squared up revision.  Hand sketch, not a full set of plans.  D. Flanigan will give an update by end of the next week 6/10 if Keller can do it or not.  If yes, R. Lindstrom will draft plans.

§ D. Flanigan will work with estimators to see if revisions gets the budget back to $7 million.

§ Nan Brien, “We can’t sacrifice so much that building does not work in the future.”  Don’t throw out the baby with the bath water.

· Review Properties for sale

o BNAW (partial group) did a tour on 5/27

§ Property comes with a land lease

§ Purchase price is $2.195 million with $21,000 annual lease

§ Scenario of purchase,+  lease and $500,000 to remodel for admin only for loan payback is a savings of $28,000 in the first year vs. continuing to rent administration building.  The savings would increase each year.

§ Scenario of $1 million remodel – save money in 4 years.

§ SCLS would have the equity of the building at end of loan.

§ Next steps:  Do we want to “lock down” or “save” the site with contingencies to back out if need be; while we work out the 2 options? Allowed to do this via 2/25/2021 BOT meeting action item.

· Offer price of $ 2 million

· Contingencies – D. Haug says we only need one good contingency

· Document review

· SCLS Board approval

· Dane County approval

· Have attorney review ground lease paperwork

· Suggests 4-6 month time to hold bldg. to determine feasibility to build delivery

Should we have D. Haug place an offer on the property?  Offer $10,000 earnest money

Corey Baumann - yes 

Nan Brien - yes                       

Kerrie Goeden - yes   

Jean Anderson - yes   

Jesse Stewart - yes     

Vicki Teal – yes                                               

Susan Feith – lost communication and could not re-establish connection

Martha Van Pelt -yes

o Hatch Building – concrete bunker - reject

o Stewart Building – Fitchburg metal warehouse -reject

o Any others? – D. Haug keeping an eye out for additional properties

Reports:

· Cancellation of Ground Breaking Ceremony – M. Van Pelt

· Update and To Do List

§ Ice cream truck cancelled

§ Send out emails postponing the ground breaking – M. Van Pelt

§ D.Flanigan told to hold horses on party plans

§ Party committee on hold – Jean

§ Music postponed - Jesse

· Status of 2801 Walton Commons – D. Flanigan, D. Haug

· PSA

· Contingencies status: in place are: financing, appraisal, construction (costs) have 6 months (October)

· Will have to redo everything for revised plans on this site

· What to do with submitted bids? Provide a recommendation to the SCLS BOT to reject all bids at their June meeting

· Let the federal solar grant ride for now along with the EBSCO grant.

· D. Haug will talk to the City of Madison (Matt M.) to update them on the outcome of our bid opening, the new $9 million estimate (can’t afford) and that we will be attempting to alter our plans on the Walton Commons site to get them back within the $7 million budget. D. Haug will call Matt M. with this information.

· Tour of Possible Purchase Site– K. Goeden

§ Covered above in Review Properties for Sale

Full List of Options to Consider:

Option A: Full building as it is 32,000 sq. ft.

· Keller assist with ownership of building; SCLS owns 75% Keller owns 25%.  Still a $9 million building.  In 20 years SCLS buys 25% from Keller

Option B: Reduce the size of the building

· Each department do a needs assessment to evaluate what we can live without and what is required in downsized building.

Option C: Purchase existing office building and add on Delivery

· We will start shopping for buildings with D. Haug.

Option D: Purchase office building and continue to lease Delivery  

Option E: Keep leasing and walk away (if A-D don’t work)

Option F: Building efficiencies to create room in budget

We have $6 million in financing confirmed.

Topics tabled for Upcoming meetings:

· Schedule Admin and Delivery meetings to discuss shared HR and filing spaces

· Median Update

· Critical Control Calendar

· CSM/CUP Updates

· Utility Applications

o Fiber, power, water, phone, cable, internet, airport permit?

· Building Permit

Homework for Next Meeting: 

· K. Goeden will send R. Lindstrom all the notes from the teams’ must have lists.

· R. Lindstrom will draft a squared up revision.  Hand sketch, not a full set of plans.  D. Flanigan will give an update by end of the next week 6/10 if Keller can do it or not.  If yes, R. Lindstrom will draft plans. D. Flanigan to revise price to build.

· M. Van Pelt will send out emails postponing the ground breaking

· D. Haug will call Matt M. at the City to update him on our situation and then send follow up email to SCLS

Next Meeting: 

June 16^th, 1-3 pm

12:00:  Adjournment

Parking Lot: 

· Have R. Lindstrom layover our Walton Commons plans onto a purchased building

· Notify Michelle Drea at the City of Madison Assessor’s office when we purchase a site.  mdrea@cityofmadison.com

· Get cost of building delivery roof that can support solar

· Get cost of putting solar on current purchased building?