Building Needs Assessment Work Group Minutes

May 19, 2022

1:30 p.m. BNAW meeting

In Person Meeting At Olbrich Botanical Gardens, 3330 Atwood Ave, Madison, WI 53704

Virtual Option available via BlueJeans

Members:

Jean Anderson SCLS Consulting Services Coordinator

Corey Baumann SCLS Delivery Services Coordinator

Kerrie Goeden SCLS HR & Finance Coordinator

Jesse Stewart SCLS Fleet Manager

Vicki Teal SCLS Technology Services Coordinator

Martha Van Pelt SCLS Director – Blue Jeans

Kristi Williams SCLS Board Trustee

Guests:

Devin Flanigan Keller Inc. Project Manager

Deb Haeffner SCLS Consultant

Absent:

Nan Brien SCLS Board Trustee

Call to Order by K. Goeden at 1:30

Approval of previous meeting minutes: May 16, 2022

a. Motion by J. Stewart to approve the minutes

b. Second by J. Anderson

c. Approved

Reports:

· CUP and CSM Updates – D. Flanigan

o Engineering holding up CUP which we need for CSM. CUP is holding up CSM. Everything held up due to a variety of reasons

· Developers Agreement – D. Flanigan

o Yes, we need an agreement but being a government agency will make it easier

Discussion:

· Bid Opening

o Next Steps - D. Flanigan shared a list of options:

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

Problem: Yearly funds required in order to finance that much

Possible solution: 30 year financing
Possible solution: 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
Balloon Loan: Loan provide financing options which allow some costs to be refinanced in 20 years.
Bridge loan of a few years to get us into a time with more funding.

Option B: Build only Delivery side of the building

Problem: What do we do with Administration?

Possible solution: Add on to the structure in 5 – 10 years

Need to house 15 of 25 minimum office
10 of 25 could work remotely or in shared spaces.

Possible solution: Administration works out of a separate building (buy or lease)
Evaluate what we can live without and what is required in downsized building.

Option C: Purchase existing office building

Problem: What do we do with either Admin or Delivery? (depending on type of building purchased)

Possible solution: Add on to the existing structure (future existing building purchase)
Possible solution: Purchase two different buildings
Possible solution: Purchase building and remodel
We will start shopping for buildings with D. Haug.

Option D: Purchase office building and continue to lease Delivery

Problem: What do we do we do with current delivery / future office layout?

Possible solution:
Possible solution: Remodel future office building
Purchase office building and house data center, Lease Delivery

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

Problem: What do we do with money spending on lease rather than mortgage?

Possible solution: Show the SCLS board that leasing provides more benefit to the System than spending the money for a building
Possible solution: Structure yearly budget to begin saving large amounts of funds

Option F: Building efficiencies to create room in budget

Problem: Mortgage payment is higher than annual budget will allow

Possible solution: Building efficiencies in having a single facility

Possible solution: Operational efficiencies in having a single building

We have $6 million in financing confirmed.

Homework for Next Meeting:

Each department will review their needs assessment to identify what is absolutely necessary in the building and what we can live without. Coordinators will meet on 5/31 to review this together. Then at the June 2 BNAW meeting we will review this with R.

Lindstrom and he will revise the building floorplans accordingly to see if this saves enough square footage to get us back within budget.

Evaluate list of optional buildings from D. Haug and schedule showings.

Next Meeting:

June 2, 2022 10:00 am – 12:00 pm

Coordinators plus D. Haeffner, J. Stewart meet 1:30 -3:30 May 31

Adjournment: 3:00