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Meinecke Miscalculation Draws Almost $1M from East Tosa Sewer Plan

After finding sewer funds were far smaller than thought, city will take nearly $1 million that had been set aside for looming East Town project to pay for Meinecke.

It did seem too good to be true, as one alderman said — and it was.

When the bid came in , a plan presented last week to make up the difference appeared to be almost painless.

It would have made up the lion's share, some $4.2 million, that needed to be spent down anyway.

The trouble was, most of those funds did not, in fact, exist.

A major miscalculation by the Finance Department of the balances in the storm and sanitary sewer funds made them appear to be nearly three times as large as they really were.

As a result, a revised plan was presented and approved Tuesday that will, in part, redirect to the Meinecke Project almost $1 million that had been earmarked for the planned East Tosa sewer project.

More than $450,000 will also be redirected from the upcoming City Hall South sewer project.

Specifically referring to the East Tosa Project, city Finance Director John Ruggini said in his revised spending plan, "It is possible these funds could be restored if other projects are under-budget over the course of the next four years; otherwise the impact would be lengthening the time in which the project is completed."

The prospect of delaying the East Tosa plan was disappointing to Alds. Bobby Pantuso and Joel Tilleson, who represent the 5th District where most of those proposed improvements would take place.

But both said that in the interests of the whole community, and specifically the immediate needs of their Meinecke neighbors, they would support the proposal.

Tilleson made a point of urging Ruggini to be constantly vigilant for any and every opportunity to restore the funding for East Tosa and keep it on schedule.

The money that wasn't there

The discrepancies in calculating the amounts in the two sewer funds were large ones. Ruggini had reported last week that the storm sewer fund contained $6.4 million — a review since has showed it to total only about $2.5 million. His earlier report showed $2.2 million in reserve in the sanitary sewer fund — the real figure is about $665,000.

Ruggini explained the miscalculation as the result of a transition taking place in the capital funds accounting system.

"The capital budgeting system prior to 2012 was a manual system relying on multiple spreadsheets maintained by several staff in multiple departments designed for a smaller-scale capital improvement budget," Ruggini wrote. "Such a situation creates greater risk for calculation mistakes, which is exactly what occurred.

"Transitioning to a more automated and integrated project accounting system whereby all project expenditures and revenues are recorded in the general ledger by project number, will greatly reduce the possibility for error," he said.

Ruggini said that concerns voiced by aldermen last week, especially those of Ald. Pete Donegan, prompted him to take a harder look at the numbers.

Donegan had expressed astonishment bordering on incredulity when Ruggini presented his first plan for funding the $5 million Meinecke plan deficit, saying that he could not understand where this "pot of money" was that the city kept going to.

The pot was there; it simply did not contain nearly as much gold as thought.

The 'unattractive options' for project funding

The sewer fund surpluses that did exist were built up in earlier budgets for projects that were later canceled or came in below budget. Once set aside for capital projects, those funds cannot revert to the general fund or any non-capital budget; they can only be spent on other capital improvements.

But the sewer funds, while larger than they needed to be, were nowhere near large enough to fund the Meinecke deficit.

Ruggini said that in his review, he tried to use the same criteria he had applied before discovering the fund discrepancy – among which was not to redirect funds from other pending projects.

However, other criteria outweighed that one, such as absolutely not increasing the city's debt, and debt service, through new borrowing on the five-year capital plan.

He and Public Works Director Bill Porter also wanted to avoid at almost any cost canceling other projects all together in favor of this one, but it was considered.

Of three options Ruggini felt were open to him, he said, one was canceling a full year of the street paving program. That was dismissed, he said, because for years the city has "aggressively been trying to get back on track" in repaving at least four miles of roadway a year — and hasn't gotten there yet.

Also considered was cancellation or long postponement of another large-scale project on 100th Street that has been stalled by regulatory issues. However, that project, while not yet bid out, is 100 percent designed at considerable cost.

"Going to the East Tosa Project was the only feasible option," Ruggini said. "Of some unattractive options, it was the one we felt we could most likely adjust to."

90th Street neighbors unhappy with outcome

It took two back-to-back meetings and three votes Tuesday to approve the revised Meinecke funding plan: a special meeting and vote of the Budget and Financing Committee to approve the revisions from last week's original plan; a vote by the full Common Council to accept the new plan; and finally a vote by the council to accept the contractor's bid on it, which finally sets the project in motion.

All ended in unanimous approvals, which did not sit well with about 10 residents who live along North 90th Street and brought protest signs to the meetings, seeking delay, redesign, rerouting or out-and-out cancelation of the Meinecke Project.

Their issue is that while the Meinecke neighborhood to the northeast of them will get flood relief that will stabilize or improve property values there, the outlet for all that water — a 10-foot-diameter buried pipe — will come down their street, disrupting their lives and .

Aldermen were sympathetic and even apologetic, but ultimately unbending in the belief that the long-planned, already long-delayed Meinecke Project must get under way.

Ald. Kathleen Causier, who alone represents those citizens' district (the 2nd) since the resignation of former Ald. Eric Meaux, apologized on the part of the city and for her own part in a failure to fully communicate the implications of the project.

"For some of you, the first notice of this was when you received assessments for sidewalks," she said. "We followed the letter of the law, but people expect more from us than that."

However, she said, it was far too late and the Meinecke Project was far too important to talk about redesigning it now, either for less impact where it is planned or to move that impact somewhere else.

"Redesign of this project would require rebidding and the loss of a construction season," she said, which would be a large and unnecessary cost and would put off further the relief of Meinecke flooding.

At the very least, the 90th Street neighbors said, the vote should be put off for two more weeks to give them a little more time to explore options with city staff.

"I have trouble seeing how two weeks is going to change things," said Ald. Jeff Roznowski of the 6th District. "I've heard from people who said we should spend more money and more time; I've heard from people who said we should spend less money and less time.

"This project is about the future of Wauwatosa. These 80- to 90-year-old pipes are ticking time bombs."

TJ Monday June 07, 2012 at 12:29 AM
Of course, by the time the "downstream" neighborhoods, essentially 90th St south of Meinecke to the Menominee River, were notified, or had learned from a surveyor about the massive Project, it was "a done deal." To add even more questionable decision-making to the hell-bound rush on this Project is that mostly these were so-called "100 year" and "500 year" rains, and statistically there is only a small chance the new sewers will be needed in the next few years, or even much longer. The Meinecke flood-prone residents were persisent and used highly emotional appeals to the City for relief from that flood potential. Young children were displayed in hearings by a tearful mother as suffering from the basement flooding and its aftermath. One fellow required back surgery after pumping his basement. There were claims that associates at work had said they would never move to Tosa due to floods. Learned from official sources, the kicker was the threat of a major lawsuit, even if that could hardly be successful. The City seems to have panicked, and was resolved to move rashly and secretly forward with the Project even if they had to drain the City treasury and defer other needed Projects. The Project came down 90th St. not because it was the best choice, just as the cheapest. The collateral damage to the peaceful and idyllic, tree-lined 90th St., is only matched by the destruction of the trust of the "downstream" citizenry for its City's administration.
alt ideas needed June 07, 2012 at 11:54 PM
well said TJ, The city council and elected officials of Wauwatosa should be ashamed. They have majorly let down their community in several ways. Feces in the basement is what happens when you do zero sewer maintenance over the course of 80+ years. The new construction project will not only result in an unnecessary removal of many large trees, but it will also limit the vehicle access to the households in proximity to the construction. Many in the area have small children, are retired, or have special medical needs. This does not bode well. Lastly, the city of Wauwatosa did a terrible job of notifying citizens, which they admitted, but also did an awful job listening to their concerns. A loss of trees is one thing, but how can you not allow a homeowner to park in their own driveway for a period of 3 to 4 months. Wauwatosa aldermen would have felt differently if the project was in their front yard. One last note, Do Not buy a house with previous water issues in the basement - you must be some sort of moron. If my family's health was in jeopardy, I would move at any and all costs. The health of your family must not be that important.
alt ideas needed June 07, 2012 at 11:58 PM
Wauwatosa is actually an Algonquin word for "colostomy bag of the good lands."
Alfred June 08, 2012 at 06:31 PM
$1million here, $1million there, who cares? As long as the cry babies on Meinecke can make money flipping their homes as soon as it is done is all we Tosa taxpayers care about....
TJ Monday June 08, 2012 at 08:19 PM
Wauwatosa should have half as many or fewer aldermen, and pay the ones left more. They do get Wisconsin Retirement System Eligibility now, so there would be savings in fewer aldermen right there. My observation through this mounting fiasco is that Wauwatosa went to five year planning a year ago. They used to start and complete projects in just one year. The aldermen are overwhelmed with these multi-year superprojects, and at $4800 a year, do not spend a lot of time studying or arguing the issues. As I heard one alderman explain, we hire these experts to head the City and then we need to support them. Another alderman said in a Council session that the pay is so low, an alderman is really just a volunteer, and, implied, you get what you pay for. Gone are the genteel and clubby days of a hearty rubber stamping of small projects in a short , boring Council session. If Wauwatosa paid more for fewer aldermen, the remaining aldermen could really get more concerned about losing their elected jobs, and devote more time to challenging the City administration when they come up with these expensive and highly controversial projects, like this one where the medicine may be worse than the ailment, at least the way the "downstream" sewer pipe was routed down a narrow and attractive residential street..
TJ Monday June 08, 2012 at 08:40 PM
alt - I have heard that people bought houses on Meinecke knowing a basement wall had collapsed, and the whole basement was painted bright red. And now we bail, in more ways than one, for lack of due diligence on their part. I have never been rewarded for screwing up, have you?. A good home inspection, particularly a basement inspector, would have found the evidence. The recourse should be against previous owners that lied on their disclosure statements, or faulty home inspectors. You can just stand on Meinecke in the affected area and look south to North Ave., It slopes UP toward the river which is just a few blocks away!! Another remedy would be a special taxing district for those affected by the flooding, where they gradually pay off the costs of their major sewer infrastructure. They should pay for their profits.
DisgustedandAppalled June 08, 2012 at 09:13 PM
Written like the BULLY you are alt ideas needed... Are you proud of yourself screaming out of your truck window "your kids look real sick better get them to the doctor" at a mother in front of her children and neighbors? You are a fool and a poor excuse for an adult. I pray to GOD you never have children, what a fine example you would be for them.
DisgustedandAppalled June 08, 2012 at 09:19 PM
TJ Monday where are you getting your information? I have never heard of anyone's walls being painted red, sounds like a crock to me, and the disinformation residents were admonished by the common council about disseminating. I don't even think you can get a loan without a home inspection and certainly years ago when they actually had a methodology for homes loans they were not allowing it.
alt ideas needed June 08, 2012 at 11:07 PM
Good thing your god does not control me. How has that prayer thing worked out for you in the past?
TJ Monday June 09, 2012 at 12:50 AM
My source is a sterling member of the Meinecke community. One member of the Common Council, if you watch it on cable, disagreed that Meinecke is a bailout. Of course, the Council is sensitive to criticisms re how they are spending over $15M and currently overbudget on a controversial project. A council member is a politician, certainly not a judge. Many homebuyers and borrowers confuse a home inspection with an appraisal. An appraisal is conducted to determine the value of the property based on many factors, including the real estate market and the home's layout, square footage, updates and quality of construction. An appraiser does not closely inspect the home for defects or structural problems, except in the case of a VA mortgage. A home inspection should be demanded by the buyer, and made a contingency of the sales contract. Of course, the recourse to a homeowner that bought a house with problems that should have been seen and noted by a home inspector but were not in the inspector's report should seek recourse from that inspector.
TJ Monday June 09, 2012 at 01:01 AM
I have heard a report that a member of the Meinecke flood prone community braked and yelled from her car at someone passing out flyers.
TJ Monday June 14, 2012 at 02:25 AM
If I were on the Council, I would have given the 90th St. residents two more weeks, if only as a token gesture. Something is very wrong here, something desperate. Why all the intrigue, the unaninimous vote against a simple plea? What kind of governance is this that outrages one neighborhood for the benefit of another? And the story just begins as the trees come down starting now.
pupdog1 July 10, 2012 at 11:15 PM
"The capital budgeting system prior to 2012 was a manual system relying on multiple spreadsheets maintained by several staff in multiple departments designed for a smaller-scale capital improvement budget," Ruggini wrote. We landed on the moon in 1969, long before even the most basic automated spreadsheets were available. Ruggini's statement is idiotic. It says his staff can't do anything even slightly complex. It also says that he has no checks and balances, or functional audits. That's a lot of property tax payments that got lost. This is about a lack of basic financial controls, and competence.
alt ideas needed May 30, 2013 at 08:56 AM
Jim Price, I need advice and a place to share this with my fellow residents affected by the construction project. My sidewalk was damaged by Globe contractors during this project in 2012. Joe Marks, city engineering dept. 414-479-8931, gave me verbal confirmation in Nov that the sidewalk would be repaired in the Spring of 2013. Now, Globe contractors has decided to hold off on any warranty problems for an undetermined amount of time. In most cities in the USA, this would be fine, but this is Wauwatosa Wisconsin, and they charge their citizens an assessment to repair the sidewalk in front of their property.

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