2003-03-25MOUND HOUSING AND REDEVELOPMENT AUTHORITY
INDIAN KNOLL MANOR
2020 Commerce f31vd.
Mound, Minnesota 55364
PUBLIC NOTICE
Telephone/Fax
(952) 4T2-5078
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The regular March 25, 2003 meeting of the- Mound Housing and
Redevelopment Authority is scheduled to begin at 7:00 p.m.
Kandis Hanson
Executive Director
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AGENDA
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
MARCH 25, 2003
. 7:00 P.M.
PAGE
1. OPEN MEETING
2. ACTION APPROVING AGENDA, WITH ANY AMENDMENTS
3. ACTION APPROVING MINUTES: MAR 1 I, 2003 REGULAR MTG 1-3
~. MANAGEMENT REPORT FOR INDIAN KNOLL, WITH ANY 4-21
NECESSARY ACTION
5. ACTION ON RECONIMENDATION TO SET BID DATE FOR 22-29
DEMOLITION OF LONGPRE BUILDING
6. ADJOURN
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MOUND HOUSING AND REDEVELOPMENT AUTHORITY
• MARCH 11, 2003
The Housing and Redevelopment Authority of and for the City of Mound,
Minnesota, met in regular session on Tuesday, March 11, 2003, at 6:30 p.m. in
the council chambers of city hall.
Members Present: Acting Chair Mark Hanus; Commissioners Bob Brown; David
Osmek and Peter Meyer.
Members Absent: Chair Pat Meisel
Others Present: City Manager Kandis Hanson, City Clerk Bonnie Ritter,
Community Development Director Sarah Smith, Finance Director Gino Businaro,
Cindy Reiter, Kim Sowder, Todd Christopherson,
1. OPEN MEETING
Acting Chair Hanus called the meeting to order at 6:33 p.m.
2. APPROVE AGENDA
MOTION by Osmek, seconded by Meyer to approve the agenda. All voted in
favor. Motion carried.
• 3. APPROVE MINUTES
MOTION by Osmek, seconded by Meyer to approve the minutes of the February
25, 2003 regular meeting. All voted in favor. Motion carried.
Acting Chair Hanus gave the history of this amendment, which was discussed at
length at the last HRA meeting.
MOTION by Meyer, seconded by Osmek to approve the First Amendment to
Agreement between the City of Mound, the HRA, and Mound Harbor
Renaissance, LLC. All voted in favor. Motion carried.
Commissioner Bob Brown arrived at 6:35 p.m.
5.
MOTION by Osmek, seconded by Brown to set April 15, 2003 at 6:30 p.m. and
May 20, 2003 at 6:30 p.m. for special meeting workshops with Mound Harbor
Renaissance, LLC. All voted in favor. Motion carried.
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Mound HRA Minutes -March 11, 2003 •
6. AGREEMENT WITH WESTPORT PROPERTIES, INC., FOR
MANAGEMENT SERVICES FOR INDIAN KNOLL MANOR
Gino Businaro gave a summary of the proposed management agreement and a
revised copy of the Westport Properties description along with an email from
HUD recommending changes that have been incorporated in the proposed
agreement.
Kandis Hanson reported that she, Chair Meisel and Gino Businaro had a
conference call with HUD regarding their concerns and support for making this
management change. They also indicated that a priority should be that the HRA
Board becomes more involved with the management of Indian Knoll. HUD will
supply the HRA with a calendar of when and what reports are due for compliance
with HUD regulations.
MOTION by Osmek, seconded by Brown to enter into the proposed management
contract with Westport Properties, Inc, effective March 17, 2003, subject to final
approval by the City Attorney. All voted in favor. Motion carried.
7. PUBLIC SAFETY BUILDING PROJECT
A. Update from Todd Christopherson of Amcon
Christopherson introduced Don Geiger of Amcon who is transitioning from a field •
superintendent to a Project Management position, and will be spending a lot of
time on the Mound Public Safety Facility.
Christopherson continued by giving an update on the schedule. The old facility is
demolished and the next step is soil correction and site grading, which is
contingent upon frost conditions. The target is between April 1 and April 15 to
dig into the-site. Prior to that tree removal and grubbing can take place. The
heavy equipment will be in place before the road restrictions go into effect.
B. Action on Request for Contingency Allocation
Christopherson presented the Budget Work Sheet to the Board, recommending
allocation of $237,522 from the contingency to balance the project costs. This will
leave $12,478 of the $250,000 unallocated at this point. There were no changes
in the worksheet since the HRA last discussed it.
Osmek asked about the FFE item as the amount is higher than he thought it
would be after the purchase of the used furniture. Hanson stated additional
adjustments will be made when the floor plans are completed and that number
will come down more.
MOTION by Osmek, seconded by Brown to release $237,522 of the contingency
as recommended by the Construction Manager. All voted in favor. Motion •
carried.
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Mound HRA Minutes -March 11, 2003
• 8. ADJOURN
MOTION. by Osmek, seconded by Brown to adjourn at 6:58 p.m. All voted in
favor. Motion carried.
Acting Chair Mark Hanus
Attest: Bonnie Ritter, City Clerk
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MOUND HOUSING AND REDEVELOPMENT AUTHORITY
INDIAN KNOLL MANOR
2020 Commerce Blvd.
Mound, Minnesota 55364
INDIAN KNOLLL MANAGEMENT REPORT
March 25, 2003
1. List of bills -requesting action
Telephone/Fax •
(952) 472-5078
2. January 31, 2003 bank reconciliation and bank statement
3. January 31, 2003 financial reports
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• IV10UI~D HOUSING AND REDE'V'ELOPMENT AUTHORITY
INDIAN KNOLL MANOR
March-D3
# CMECK ND VENDOWMERCHANT A11flQUNT DESChIPTION
1 1025 AT & T WIRELESS $ 13,77 MAR SEF2VICE
2 1026 FRONTIER COMMUNICATIONS $ 253.83 MAR SERVICE
3 1027 BAREFOOT TURF $ 185.00 FEB SNOW REMOVAI.
4 1028 BFI $ 340,23 MAR Si=RVICE
5 1029 CITY OF MOUND $ 1,058.85 1?J70 & 216
6 1030 C NABER $ 288.18. FEB ACCT/YEAR ENb
7 1031 DEYAPPL.IANCE $ 33.71 MISC SUPPLIES
8 1032 lOS $ 99.37 MAR LEASE
9 1033 MINNCOMM $ 13,10 PAGER
10 1034 CENTERPOINT(MINNEGASCO) $ 5,558,22 ,IAN ~ E'EB
11 1035 PARR SUPPLY $ 17,51 MISC SUPPLIES
12 1036 RENTAL RESEARCH $ 22.50 CREDIT APPLICATION
13 1037 VIP PROPERTIES $ 6,546,64 1-31/2-15/Z-26 PAYROLL
14 1038 VIP MAINTENANCE $ 1,042.55 MISC REPAIRS
15 1039 MILL CREEK BANK $ 58,26 MISC SUPPLIES
16 1040 pdQ SUPPLY $ 401.88 5 OVEN THERMOSTATS
17 1041 OFFICE bEPOT $ 43,15 OFFICE SUPPLIES
• 18
19 1042
1043 CUMMINS NI'OWER
US BANK $
$ 333.00
1
080
59 HVAC REPAIRS
8 MONTHS STORAGE
20 1044 VIP PROPERTIES $ ,
,
1,650,00 FEB MGMT FEE
21 1045 VIP P~20PtrRTIES $ 2,324,77 3-15 PAYROLL
22
23
24
25
$ 21,365.12
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E/Z ' d 9bS ' ON ~~T I ?I~.-In?I~ .~ T n i.iHCiri • 7 T cara~ • r ~ ~ vw. ~
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INDIAN KNOLL MANOR OPERATING CASH BALANCE - DETAIL
FOR CASH ACCOUNT 1010 02:48 PM'
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March 14, 20
03
. PAGE:
DEPOSITS SYSTEM MANUAL JOURNAL BALANCE
CHECKS CHECK6
------ ENTRIES
---------------------------
--
--------
02/26 --------------------------------------------
BEGINNING BALANCE -------------------------------- ------------ 71,554.11
03/14 CHECK# 1025 AT & T WIAELES6 13.77
03/14 CHECK# 1026 FRONTIER COMMUNICATIONS 253.83
03/14 CHECK# 1027 BAREFOOT TURF 185.00
03/14 CHECK# 1028 BROWNING FERRIS INDUSTRIES 390.23
03/14 CHECK# 1029 CITY OF MOUND 1,058.85
03/14 CHECK# 1030 C NABER & ASSOCIATES 288.18
03/14 CHECK# 1031 DEY APPLIANCE PARTS 33.71
03/14 CHECK# 1032 IOS CAPITAL 99.37
03/14 CHECK# 1033 MILAN COMM 13.10
03/14 CHECK# 1034 CENTERPOINT ENERGY ` 5,558.22 ~ ~E~/ ~~~
03/14 CHECK# 1035 PARK SUPPLY INC 17.51
03/14 CHECK# 1036 RENTAL RESEARCH SERVICES 22.50 ]/
/
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03/14 CHECK# 1037 VIP PROPERTIES 6, 546.64 - ~y/ '
/
/S '
/
03/14 CHECK# 1038 VIP PROPERTIES MAINT 1,042.56
03/14 CHECK# 1039 MILL CREEK BANK MENARDS 58.26
03/14 CHECK# 1040 PDQ SUPPLY, INC 401.88
03/19 CHECK# 1041 OFFICE DEPOT 43.15
03/14 CHECK# 1442 CUMMINS NPOWER, LLC 333.00 n p~~
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59 -~" J Td'~'/
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03/14 CHECK# 1043 US BANK ,
.
03/14 CHECK# 1044 VIP PROPERTIES 1,650.00
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ISEt~ A~D?'~ ~rf~cd~O
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Mound, MN Public Housing
.statement seginning date: 01/01/03 Bank Reconciliation Worksheet
Statement Ending date: 01/31/03
Checkbook Name: P/H Checking
~ment Summary
Beginning Balance
Deposits and Credit Memos
Checks and Debit Memos
Other Bank Items
Ending Balance
Bank Summary
Ending Bank Balance
Checks and Debit Memos in transit
4604 10/08/02 Leo Utecht
Total
Ending Balance
Book Summary
G2 account: 111101
G2 journal: General
G2 period: O 1 /31 /03
Unadjusted G2 Balance
Adjustments
Reconciled G2 Balance
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92,708.30
22,520.74
(19,378.51)
0.00
95,850.53
95,850.53
151.50
(151.50)
95,699.03
95,699.03
0.00
95,699.03
1 G. 3
Page 1
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Continued on next page:,: ..
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Conflnued on next page
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MQIA
Summary Statement
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,4~MT ~ ~N.
February 2003
For more information, call MBIA Client Services at (800)395-5505
Fax: (800)765-7600
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Mound Housing and Redevelopment Auth.
Account Number: MN-01-0258-2001
Account Name: GENERAL FUND
Beginning Contributions Withdrawals Income Average Daily Month End
Balance Earned Balance Balance
This Month $193,620.13 $0.00 $0.00 $161.87 $193,704.38 $193,782.00
Fiscal YTD
Endin 12/31/0 $193,443.04 $0.00 $0.00 $338.96 $193,617.00 $193,782.00
Account Number: MN-O1-0258-2002
Account Name: MOUND HUD
Beginning Contributions Withdrawals Income Average Daily Month End
Balance Earned Balance Balance
This Month $11,346.02 $0.00 $0.00 $9.51 $11,350.96 $11,355.53
Fiscal YTD .
Endin 12/31/0 $11,335.65 $0.00 $0.00 $19.88 $11,345.83 $11,355.53
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Total of all accounts
Beginning Contributions Withdrawals Income Average Daily Month End
Balance Earned Balance Balance
This Month $204,966.15 $0.00 $0.00 $171.38 $205,055.34 $205,137.53
Fiscal YTD
Ending 12/31/0 $204,778.69 $0.00 $0.00 $358.84 $204,962.83 $205,137.53
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February 2003
Page: 1
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' Mound. MN Public Housing
2020 Commerce Boulevard
Mound. MN 55364
As OF
January 31.2003
BALANCE SHEET
ASSETS
111101 -Cash General Fund 95,699.03
111700 - Petty Cash 100.00
112200 - Tenants Accounts Receivable 3,849.80
112201 -Allowance for Doubtful Accounts (361.55)
112900 - City of Mound 910.11
116200 - General Fund Investments 11,335.65
121100 - Prepaid Insurance 5,216.17
140002 - Development Cost 1,505,904.64
140003 - Development Cost Contra (2,042,760.55)
140005 - Accumlated Depreciation (1,614,386.20)
140007 - Buildings 1,642,970.53
140008 - Furniture,Equipment,Machines-Dwelling 31,901.13
140009 - Furniture,Equipment,Machines-Admin 16,477.02
140016 - Land Improvements 8,680.00
140017 - Building Improvements 516,849.64
140055 - Mod Cost Complete 536,855.91
140095 -Mod Cost Uncomplete 20,900.00
150600 -Mod- Cost Uncomplete Contra (12, Qf) 0.001
TOTAL ASSETS 728.141.33
SURPLUS AND LIABILITIES
211400.- Tenants Security Deposits (10,203.00)
212900 - Notes Pay Levy Fund (90,000.00)
213700 - Payment in Lieu of Taxes (4,585.17)
213701 -PILOT Current Year {1,544.87)
229021 -Deferred Credit CF 20 (100.00)
280200 - HUD PHA Contribution (459,944.52)
280600 - Retained Earnings (136,755.26}
Current Year Net Activity {2~,008_~11
TOTAL SURPLUS AND LIABILITIES (728.141.331
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Mound, MN Public Housing '
2020 Commerce Boulevard
Mound. MN 55364
As Of
January 31.2003
Statement of Operating Receipts & Expenditures
311000 - Dwelling Rental
312000 - Excess Utilities
Total Rental Income
361000 - Investment InterestlGeneral Funds
369000 - Other Income
802000 - Operating Subsidy
Total Other Operating Receipts
Total Receipts
Expenses
411000 - Administrative Salary
413000- Legal Expense
414000 - Staff Training
415000 - Travel
417000 - Accounting Fees
417100 - Auditing Fees
419000 - Sundry-Administrative
419500 - Outside Management
Total Administrative Expense
Total Tenant Services Expense
431000 - Water
432000 - Electricity
433000 - Gas
439000 - Other Utility Expense
439100 - Garbage.Removal
Total Utilities Expense
441000 - Maintenance Labor
442000 - Materials
443000 - Contract Costs
Total Maintenance Expense
YTD Over
Current YTD Prorated (Under)
Activi Balance Budget Budget
(11,095.55} (42,851.20) (45,873.32) (3,022.12)
0.00 0.00 (250.001 !250.0
(11,095.55) (42,851.20) (46,123.32] 3,272.12
(7.44) (66.97} (200.00) (133.03)
(124.00) (857.01) (500.00) 357.01
X10.715.001 _08.449.001 (14.3$0.00) 14.069.00
(10,846.44) (29,372.88) (15,080.00) (14,292.98}
0.00 0.00 14,400.00 (14,400.00}
0.00 0.00 200.00 (200.00)
0.00 0.00 166.68 (166.68)
0.00 0.00 233.02 (233.32)
95.00 760.00 700.00 60.00
0.00 0.00 266.68 (266.68)
939.20 2,406.08 1,800.00 606.08
3.208.44 6.508.44 0.00 6.508.44
4,242.64 9,674.52 17,766.68 (8,092.16)
o.oo o.oa o.oo o.oo
163.14 552.74 1,000.00 (447.26)
1,163.81 2,997.86 4,200.00 (1,202.14)
2,132.19 4,701.70 5,333.32 (631.62)
836.53 2,302.43 3,833.32 (1,530.89)
340.23 1.399.04
4.635.90 11,953.77
o.oo o.o0 12,060.00 (12,oso.oo)
481.52 2,030.68 2,733.32 (702.64}
3.034.93 14.094.27 6.106.68 7.987.59
316.45 16,124.95 20 0,9 O.OD X4,775.05)
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Mound, MN Public Housing _ _ __ __
2020 Commerce Boulevard
Mound, MN 55364
As Of
January 31, 2003
Statement ofi Operating Receipts & Expenditures
YTD Over
Current YTD Prorated (Under)
Activi Balance Buds~et Budget
451000 - Insurance 650.00 3,364.50 2,386.68 977.82
452000 - Pmts In Lieu Of Taxes 322.98 1,544.87 1,520.00 24.87
453000 -Terminal Leave Payments 6,983.52 6,983.52 0.00 6,983,52
454000 - Employee Benefit Contributions 0.00 175.91 1.380.04, 1.204.09}
Totai General Expense 7,956.50 12.068.80 5.286.68 __ 6.782.12
Total Routine Expense
601000 - Prior Year Adjustments-Cash
Tota{ Nonroutine Expense
(6.740.031 (,x.740.03) 0.00 (6.740.03)
0,740.031 (8,740.03) 0.00 0,740.031
Total Expense
Mound, MN Public Housing
2020 Commerce Boulevard
Mound, MN 55364
As Of
January 31, 2003
Budget Progress Report
Percent
YTD Of
Balance Budget Budget
Income
311000 - Dwelling Rental (42,851.20) {137,620.00} 31 °lo
312000 - Excess Utilities 0.00 (750.001 0%
Total Rental Income (42,851.20) (138,370.00} 31%
361000 - Investment Interest/General Funds (66.97) (600.00) 11
369000- Other income (857.01) {1,500.00) 57%
802000 - Operating Subsidy ,28.449.00) (43.140.00) 66%
Total Other Operating Receipts (29,372.98) (45,240.00) 65%
Total Receipts (72.224.18) )183,610.001 39%
Expenses
411000 - Administrative Salary 0.00 43,200.00 0%
413000 - Legal Expense 0.00 600.00 0%
414000 - StafF Training 0.00 500.00 0%
415000 - Travel 0.00 700.00 0%
417000 - Accounting Fees 760.00 2,100.00 36%
417100 - Auditing Fees 0.00 800.00 0%
419000 - Sundry-Administrative 2,406.08 5,400.00 45%
419500 - Outside Management 6.508.44 0.00 0%
Total Administrative Expense 9,674.52 53,300.00 18%
Total Tenant Services Expense 0.00 0.00 0%
431000 - Water 552.74 3,000:00 18°k
432000 - Electricity 2,997.86 12,600.00 24%
433000 - Gas 4,701.70 16,000.00 29%
439000 - Other Utility Expense 2,302.43 11,500.00 20%
439100 - Garbage Removal 1.399.04 3.980.00 35%
Total Utilities Expense ~ 11,953.77 47,080.00 25%
441000 - Maintenance Labor 0.00 36,180.00 0%
442000 - Materials 2,030.68 8,200.00 25%
443000 - Contract Costs 14.094.27 18.320.00 77%
Total Maintenance Expense 16,124.95 62,700.00 26%
4
Mound, MN Public Housing
2020 Commerce Boulevard
Mound, MN 55364
As Of
January 31, 2003
Budget Progress !PUM Report
Income
311000 - Dwelling Rental
312000 - Excess Utilities
Total Rental Income
361000 - Investment Interest/General Funds
369000 - Other Income
802000 - Operating Subsidy
Total Other Operating Receipts
Total Receipts
Expenses
411000 - Administrative Salary
413000 - Legal Expense
414000 - Staff Training
415000 - Travel
417000 - Accounting Fees
417100 -Auditing Fees
419000 - Sundry-Administrative
419500 - Outside Management
Total Administrative Expense
431000 - Water
432000 - Electricity
433000 - Gas
439000 - Other Utility Expense
439100 - Garbage Removal
Total Utilities Expense
441000 - Maintenance Labor
442000 - Materials
443000 - Contract Costs
Total Maintenance Expense
ACTUAL BUDGET
Amount PUM Amount PUM
(42,851.20) (218.63) (137,620.00) (234.05)
0.00 0.00 (750.001 (1.28)
(42,851.20) (218.63} (138,370.00} (235.32)
(66.97) (0.34) (600.00) (1.02)
(857.01} (4.37} (1,500.00) (2.55)
(28.449.00 L45.15) (43.140.04,1 (73.371
(29,372.98) (149.86) (45,240.00) (76.94)
0.00 0.00 43,200.00 73.47
0.00 0.00 600.00 1.02
0.00 0.00 500.00 0.85
0.00 0.00 700.00 1.19
760.00 3.88 2,100.00 3.57
0.00 0.00 800.00 1.36
2,406.08 12.28 5,400.00 9.18
6.508'.44 33.21 0.00 0.00
9,674.52 49.36 53,300.00 90.65
552.74 2.82 3,000.00 5.10
2,997.86 15.30 12,600.00 21.43
4,701.70 23.99 16,000.00 27.21
2,302.43 11.75 11,500.00 19.56
1.399.04 7.14 3.980.00 6.77
11,953.77 60.99 47,080.00 80.07
0.00 0.00 36,180.00 61.53
2,030.68 10.36. 8,200.00 13.95
14.094.27 71.91 18.320.00 _ 31.16
16,124.95 82.27 62,700.00 ~ 106.63
' Mound, MN Public Housing
2020 Commerce Boulevard
Mound. MN 55364
As Of
January 31, 2003
Pilot Calculation
Current To
Period Date
311000 - Dwelling Rental 11,095.55 42,851.20
TotalRentallncome 11,095.55 42,851.20
431000 - Water 163.14 552.74
432000 - Electricity ~ 1,163.81 2,997.86
433000 - Gas 2,132.19 4,701.70
4390(DO - Other Utility Expense 836.53 2,302.43
439100 - Garbage Removal 340.23 1,399.04
Total Utilities 4,635.90 11,953.77
6,459.65 30,897.43
X5% X5%
TotalPilot 322.98 1.544.87
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Mound, Imly ruuiic Mousins~
2020 Commerce Boulevard
Mound, MN 55364
As OF
January 31.2003
TRIAL BALANCE
111101 -Cash General Fund 95,699.03
111700 - Petty Cash 100.00
112200 - Tenants Accounts Receivable 3,849.80
112201 -Allowance for Doubtful Accounts (361.55)
112900 - City of Mound 910.11
116200 - General Fund investments 11,335.65
121100 - Prepaid Insurance 5,216.17
140002 - Development Cost 1,505,904.64
140003 - Development Cost Contra (2,042,760.55)
140005 - Accumlated Depreciation (1,614,386.20)
140007 - Buildings 1,642,970.53
140008 - Furniture,Equipment,Machines-Dwelling 31,901.13
140009 - Furniture,Equipment,Machines-Admin 16,477.02
140016 - Land Improvements 8,680.00
140017 - Building Improvements 516,849.64
140055 - Mod Cost Complete 536,855.91
211400 - Tenants Security Deposits (10,203.00)
212900 - Notes Pay Levy Fund (90,000.00)
213700 - Payment in Lieu of Taxes (4,585.17)
213701 -PILOT Current Year {1,544.87)
229021 -Deferred Credit CF 20 ~ (100.00}
280200 - HUD PHA Contribution (459,944.52}
280600 - Retained Earnings (136,755.26}
311000 - Dwelling Rental (42,851.20)
361000 - Investment Interest/General Funds (66.97)
369000 - Other Income (857.01)
417000 - Accounting Fees 760.00
419000 - Sundry-Administrative 2,406.08
419500 - Outside Management 6,508.44
431000 - Water 552.74
432000 - Electricity 2,997.86
433000 - Gas 4,701.70
439000 -.Other Utility Expense .2,302.43
439100 - Garbage Removal 1,399.04
442000 - Materials 2,030.68
443000 - Contract Costs 14,094.27
451000 - Insurance 3,364.50
452000 - Pmts In Lieu Of Taxes 1,544.87
453000 -Terminal. Leave Payments 6,983.52
454000 - Employee Benefit Contributions 175.91
601000 - Prior Year Adjustments-Cash (6,740.03)
602000 - Prior Year Adjustments-Noncash 4,133.66
802000 - Operating Subsidy (28,449.00)
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5341 Maywood Road
Mound, MN 55364
(952) 472-3190
MEMORANDUM
To: Mound Housing and Redevelopment Authority
I+Yom Matt Simoneau, Building Official ~ Sarah Smith, Comm. Dev. Director
Date: ___ March 20, 2003
ge: Former LongpreBuilding -Authorization by HRA to Advertise for Bids
Background
As the I-iRA is aware, the City purchased the former Longpre building in 2001 and plarmed to
demolish the structure shortly thereafter. ~g peon of the bid documents, a number of
conditions were idenrtified which sigmficarrtly increased the cost of the project therefore the HRA
opted to delay the demolition until the adjacent structures could be removed at the same time.
Since that time, rlwnerous concerns have been raised from both City staff and the. public about the
building including possible safety hazards (ie. falling bricks and/or exterior material, increased
potential for fire and vandalism, failing roof ~~ hazardous materials, etc.) Additionally, negative
comments regarding the building's appearance are corrtinnually heard by City staff and officals.
As the HItA may be aware, City crews removed loose bricks and stucco from the building last
summer following an inspection by the Building Official. Additionally, a volunteer crew painted the
exterior boards as suggested by the Planning Cornmisaon in an attempt to minimize the building's
"boarded up" appearance
LMCIT boss Control Inspection
The League of Mnnesota Cities Insurance Trust (L,MCTI~, the City's insurance carrier, conducted a
routine inspection in February 2003 to evaluate the building. The following problems were
identified:
• Stucco falling on the sidewalk on the west side ofthe building
• Bricks falling to the ground onthe-east side ofthe building
• Wall buckling on the east side of the building
• Wood awnings deteriorating and falling on the north ar-d west sides
• Close proximity and shared walls with ncghboring buildings
• Asbestos corrtauvng items in the urterior of the building
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As stated in their February 20, 20031etter, the LMC1T has requested a response from the City within
• 60-days to address how the City intends to respond to their concerns. Members of the HRA are
advised that the LMCIT has strongly recommended that the City again consider demolition of the
Longpre building as it seems to have continued to deteriorate since their 2001 inspection.
Preliminary Estimate
Based on recent disaission(s) with a demolition contractor who specializes in "infill building
removal" it is estirt>ated that it could cost between $100,000 - $125,000 to remove the building. At
this time, City staff is working on a number of possible financing options to pay for the project and
will further'this-discziss°this-issue~at-the-me~ng.
Staff' Recommendation
Over the course of the last month, City sta. including the City Manager, City Engineer, Public
Works Director, Fire Chief Building Official and Finance Director have met several times to discuss
the issue(s). At this time, City staff is recommending that the HRA authorize City staff to proceed
with the bidding process to demolish the fomler Longpre building.
City staff will be present at the March 25'~ HRA meeting to provide additional comment regarding
this matter and regwnd to questions from HRA members.
Attachments
• • Letter from LMCIT dated February 20, 2003
• Advertisement for Bid for Building Demolition
• Memorandum from City Engineer dated August 24, 2001
•
• Page 2
-23-
/ LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
Loss Control Services Administration: •
c/o Berkley Risk Administrators Company, LLC
222 South 9th Street, Suite 1300, Minneapolis, Minnesota 55402-3332
League of Minnesota Cities Phone: (612) 766-3172 Fax: (612) 766-3199
Cities ~romofing ¢xce~lerice Web Site: www.lmnC.org
February 20, 2003
Ms. Kandis M. Hanson
City Manager
City of Mound
5341 Maywood Road
Mound, MN 55364
Dear Ms. Hanson:
A routine loss control survey was recently conducted concerning the Longpre building on
Commerce Boulevard. This was in conjunction with the City's participation in the League of
Minnesota Cities Insurance Trust (LMCIT) property, liability and workers' compensation program. •
The purpose of my visit was to assist the city in the reduction of potential loss through loss control
and risk management activities.
01-02/03 At the time of our loss control survey, we discussed the demolition of the "Longpre
building" on Commerce Boulevard.
In reference to the April 23, 2001 memo written by Bernie Szczesniak LMCIT, Loss Control
Consultant, "the building will require significant interior and exterior renovation; and deterioration
of the exterior of the building was noted. Once the city owns the building it should consider
demolition as soon as practicable to prevent further liability to the city. Extreme care should be
taken when doing demolition to prevent any damage to the adjacent buildings."
The problems with the building noted on the day of my survey February 07, 2003 included:
- Stucco falling to the sidewalk on the west side of the building.
- Bricks falling to the ground on the east side of the building
- Wall buckling on the east side of the building
- Wood awnings deteriorating and falling on the north and west sides
- Close proximity and shared walls with neighboring buildings
- Asbestos containing items in the interior of the building outlined in the STS survey of 2001
The Risk ~1V,~anagement problems associated with the building may present hazards to the public.
You may `f'ind that these. issues. may be. more cost effectively addressed by the demolition of the -
building versus renovation. It is again recommended that the city strongly consider. demolition of
the Longpre building as it seems to have continued to deteriorate since our last visit in 2001.
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
-24-
Page 2
•
The long-term benefits and successes that can be enjoyed by a cooperative, self-insurance
organization depend upon ,serious and careful consideration of loss control recommendations. In
that context, we ask. that you keep us informed of the steps you take to address these loss control
recommendations. Therefore, please respond within 60 days of your receipt of this letter
regarding the status of how you intend to respond to these loss control recommendations.
I appreciate the time and courtesy extended to me at the time of my loss control visit. If I can be of
-~~~~.,,~ ~-.~ -any-assistance befor-e any-next: visit; pie-asETdo -nnt-hesitate-tt~--contact~le:~---~ -~°~ -~~~ mM -~-Y
Sincerely,
Lori A. Severson, M.S...
Loss Control Consultant
Berkley Risk Administrators Company, LLC
cc: Mr. Gino Busnario, Finance Director
5341 Maywood Road
Mound, MN 55364
Arthur J Gallagher & Co./Youngdahl
7825 Washington Ave S.
Suite 300
Minneapolis, MN 55439
Recommendations and comments are provided for loss control and risk exposure improvement purposes only in
conjunction with the insurance program referenced above. They are not made for the purpose of complying with
the requirements of any law, rule or regulation. We do not infer or imply in the making of these
recommendations and comments that alI sites were reviewed or that -all possible hazards were noted. The final
responsibility for conducting loss control and risk management programs must rest with the insured.
•
-25-
ADVERTISEMENT FOR BIDS
CITY OF MOUND HOUSING AND REDEVELOPMENT AUTHORITY
DEMOLITION AND SITE CLEARING •
LONGPRE BUILDING
Sealed proposals will be received by the Mound City Clerk until 11:00 A.M. Wednesday, Apri130,
2003 at the City of Mound Offices, at which time they will be publicly opened and read aloud, for the
furnishing of all labor, equipment and materials to complete the demolition and site clearing of the Longpre
Building at 2300, 2308, and 2310 Commerce Boulevard.
The bids will be considered by the Mound Housing and Redevelopment Authority at their meeting
"on Tuesday; May 13; 20.~~ _r__~ a ~ ~ ~~ ~ - _ ~ - _~_R.~ r- _~ ~v.~ -a
All proposals shall be addressed to:
Bonnie Ritter, City Clerk
City of Mound
5341 Maywood Road
Mound, Minnesota 55364
and shall be securely sealed and shall be endorsed on the outside with the statement "Demolition and Site
Clearing, Longpre Building" and shall be on the Bid Form included in the specifications for the project.
Copies of the plans and specifications and other proposed contract documents are on file with the
City Clerk and at the office of McCombs Frank Roos Associates, Inc., 15050 23rd Avenue North, •
Plymouth, Minnesota 55447. Plans and specifications for use in preparing bids may be obtained at the
offices of the Engineer upon payment of $30.00 per set (includes MN sales tax), which is NON-
REFUNDABLE.
Each bidder shall file with his bid a cashier's check, certified check, or bid bond in an amount of not
less than five (5) percent of the total amount of the bid. No bid may be withdrawn within sixty (60) days
after the bids are opened.
The HRA reserves the right to reject any and all bids and waive any informalities or irregularities
therein.
Mound Housing and Redevelopment Authority
Pat Meisel, Chairperson
ATTEST: Bonnie Ritter, City Clerk and HRA Secretary
s:\tnaiu:\Mou 13314\Specs\adforbid20U3
-26-
FRA
August 24, 2001
Ms. Kandis Hanson, City Manager
City of Mound
5341 Maywood Road
Mound, Minnesota 55364
SUBJECT: HRA City of Mound
Longpre Building Demolition
MFRA #13314
Dear Kandis:
• As you are aware, we were directed by the HRA to proceed with the bidding process for demolition
and site clearing of the Longpre property recently acquired by the City. During preparation of the
bidding documents, a number of conditions became apparent that could add significant cost to this
project.
We are estimating that the additional cost to demolish the Longpre building separately from the
attached building to the south and the structure within three feet to the east could easily exceed
$60,000. The following are conditions that now exist which will add to the demolition expense and
would have little or no impact on cost if delayed until the adjacent structures can be removed at the
same time:
- Connection to Larson Printing building to the south. The Longpre building has a full
basement, whereas it appears the attached building is a slab on grade with frost footings. At a
minimum, the south wall and possibly short sections of both the east and west wall of the
Longpre building would need to be left in place to prevent structural damage to the Larson
building. Many more precautions would also be required in the demolition of the Longpre
building as a separate undertaking than if both buildings could be removed at the same time.
- Available Working Space. The area of the Longpre property, beyond the building is very
limited; therefore either construction easements would be required or the majority of the
demolition must be accomplished from the two streets, which are both Hennepin County
Roads. This would require special permitting from Hennepin County and would probably
• result in partial road closings and additional cost to the project.
-27-
- Lauer Building. The removal of the Lauer building at the same time is not as critical,
however some cost saving could be realized if done as a package.
For the reasons stated, we are recommending that the demolition of the Longpre building be delayed
until control of the Larson and Lauer properties are obtained and demolition of all three buildings
can be undertaken at the same time.
If you have any questions or need additional information, please contact us.
Sincerely,
MFR.A
John Cameron, City Engineer
JC:pry
s:\main:\Mou 13314:\Corcespondence\hanson8-23
•
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