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HomeMy WebLinkAbout2024-4-2 FOC MEETING MINUTES HERO TRAINING CENTER 4/2/2024 FACILITY OPERATIONS COMMITTEE 10125 85TH STREET SOUTH COTTAGE GROVE, MINNESOTA 55016 REGULAR MEETING – 1:00 P.M. (In-person or TEAMS) - MEETING MINUTES 1. CALL TO ORDER at 1300 hours 2. ROLL CALL Committee members present: Clint Gridley (Woodbury), Pete Koerner (Cottage Grove), Jason Posel (Woodbury), Jennifer Levitt (Cottage Grove), Angela Gorall (Woodbury), and Brenda Malinowski (Cottage Grove) Others present: Dan Anselment (HERO Manager), Bri Zeterlu (HERO), Tom Ehrenberg (Woodbury), Brad Petersen (Cottage Grove) and Crystal Raleigh (Cottage Grove). Board members Clint Gridley and Angela Gorall attended the meeting remotely from Woodbury City Hall, located at: 8301 Valley Creek Road, Woodbury, MN 55125. 3. PRESENTATIONS None. 4. CONSENT AGENDA A. HERO FOC Meeting Minutes – January 17, 2024 Staff Recommendation: Approve the Meeting Minutes from January 17, 2024, regular meeting. B. HERO Financial 2023 Year End Report Recommendation: Receive Information. Moved to Regular Agenda item 6C C. HERO Financial Statements – 2024 Budget to Actuals Recommendation: Receive Information D. HERO 2023 Annual Report Recommendation: Approve the 2023 Annual Report Motion to approve the consent agenda made by MALINOWSKI and seconded by KOERNER. Motion carried 5 to 0. (Gridley was not present until 1303 hours) 5. APPROVE DISBURSEMENTS A. Approve payments from 1/11/2024 to 3/25/2024 in the amount of $92,514.56. Motion to approve the disbursements made by LEVITT and seconded by MALINOWSKI. Motion carried 6 to 0. 6. REGULAR AGENDA A. Kraus Anderson Facility Condition Assessment Proposal HERO Capital Improvement - $7,400 Recommendation: Discuss hiring Kraus Anderson for assessment to build capital improvement for HERO. This is a non-budgeted item for 2024 and requires FOC approval. ANSELMENT contacted Kraus Anderson concerning the capital improvement plan for HERO. Kraus Anderson offers an extensive report and online portal that will inform HERO specifically what items will need to be replaced in what time frames. This is a non-budgeted item of $7,400.00. GORALL inquired is HERO has established a threshold of what a capital improvement plan should operate within, $5,000.00 , $10,000.00? MALINOWSKI advised that the city of Cottage Grove operates at $5,000.00 for operating budget capital and $15,000.00 for improvement plan capital. GRIDLEY stated that if Cottage Grove would like to remain consistent with their current capital improvement plan (CIP) funding then HERO should set the plan at $15,000.00. This will be a five-year CIP that can be in the budget process. Motion to approve the regular agenda made by LEVITT and seconded by MALINOWSKI. Motion carried 6 to 0. B. HERO Center Roof Repair – Design Contract and Authorize Preparation of Plans and Specifications. Recommendation: It is recommended that the Board authorize entering into the attached design and bidding services contract with Leo A Daly, subject to minor modification as approved by the HERO Center Manager and authorize the preparation of Plans and Specifications for the HERO Center roof repair. LEVITT advised that the League of MN will now be covering the entire cost of the roof repair, and that the city will be charged another deductible of $1,000.00 towards the insurance plan. HERO will need to hire a third-party inspector for the repair and the third party must be approved by the League of MN. RALEIGH stated that the League of MN will also pay for the temporary ballasts that are necessary for preserving the roof current condition. ANSELMENT informed the FOC that he had spoken with the League of MN and provided them with an estimate for loss of revenue if the range were to be closed due to additional roof damage. This estimate assisted in the League of MN paying for the repairs and temporary ballasts. LEVITT stated that there may need to be several quick FOC meetings soon to ensure that the roof repair plan continues to move forward. ANSELMENT advised that Cottage Grove city attorney KORI LAND had sent a demand letter to Carlisle (the manufacturer of the roofing membrane) demanding they honor their roofing warranty and in leu of replacing the roof the city would accept a payment of $400,000.00 to cover the roof repair costs. Carlisle responded and would not change their stance on the report they drafted which denies this is a warranty issue. ANSELMENT then stated that he is looking for the FOC to approve the design service contract with LEO A DALY. GRIDLEY inquired as to why HERO is considering LEO A DALY for this project stating that their initial work had some concerns because we aren’t certain if the roof issue was also a design build issue or not? GRIDLEY mentioned that he also understands that LEO A DALY would have all of the original drawings. LEVIIT informed the FOC that due to the project being over $100,000.00 it is legally open for bids. Cottage Grove spoke with the architect from LEO A DALY and informed him that this project would be closely monitored and shared some of the concerns from the original project. LEVITT said she had a productive conversation with the architect with some reassurance as to their ability to perform the service needed. GRIDLEY stated he understood and would support LEO A DALY performing the service work for the design. Motion to approve HERO Center Roof Repair – Design Contract and Authorize Preparation of Plans and Specifications with LEO A DALY made by KOERNER and seconded by MALINOWSKI. Motion carried 6 to 0. c. HERO Financial 2023 Year End Report Recommendation: Receive information and discuss any questions regarding 2023 budget. ANSELMENT stated that in the 2023 Year End Report the hosted course registration was the lowest revenue maker for the HERO Center along with ~$30,000.00 worth of course registrations being returned due to course cancellations. Ammo sales were down significantly from previous years with ammo becoming more accessible in other locations. Classrooms (primarily A+B) also showed a decrease in revenue, which correlates with the covid bans being lifted and groups now having meetings back at their own businesses. Most notable was a decrease from 3M and other organizations who had to use HERO during COVID restrictions more than they normally would because of the larger classroom spaces. ANSELMENT also advised that the Shooting Range revenue was higher than anticipated in the projection and the Mats room was double the revenue than what was expected which was a pleasant addition. The Reality Based indoor and outdoor areas were consistent with the projected budget and right on target. MALINOWSKI informed the FOC that the personnel services for the HERO maintenance position was hired in March of 2023, saving HERO $18,000.00 due a later start date for the year. Commodities saved approximately $13,000.00 and items under the capital less than 5,000 was the fencing consortium and the purchase of a new floor scrubber. Data processing includes IT services and the software subscription for Civic Rec, the POS system which was $9,872 of the total. Cleaning removal was over by $6,100.00 due to the new cleaning contract. The total savings for HERO in the area of contractual services was ~$32,000.00 under budget. GRIDLEY asked that each city’s annual contributions be listed in the financial reports moving forward so that each partner is aware of what they must potentially pay at the end of the year. Woodbury would like to use their Public Safety fund if possible and will work on that with their own internal team. GORALL advised that they (Woodbury) have a Public Safety Fund of $110,000.00 budgeted for the year. GRIDLEY inquired how to retroactively pay the amount due. MALINOWSKI stated that the city of Cottage Grove would send Woodbury an invoice. MALINOWSKI advised that having to pay into the HERO center to offset the deficit has been brought to the attention of Cottage Grove’s city council with the understanding that money is being saved by having employees train locally and not elsewhere. On the topic of the Capital Improvement Plan, GORALL stated that regardless of what the Capital Improvement Plan comes back with we do not have any funds set aside for capital improvements especially with both cities having to contribute some funds annually moving forward. GORALL inquired as to what dollar amount do we need to consider for something to be a capital improvement item. MALINOWSKI mentioned Cottage Grove uses $15,000 threshold for CIP items and GORALL stated Woodbury uses $10,000 for the threshold. GRIDLEY mentioned he was okay with using $15,000 to keep it easier for Cottage Grove because this is how CG current financial policies are written. ANSELMENT along with attorney KORI LAND will be drafting a change of language for the MMB contract to allow HERO to pursue more income revenue streams from the civilian market. Motion to approve HERO Financial 2023 Year End Report made by LEVITT and seconded by GRIDLEY. Motion carried 6 to 0. 7. ADJOURNMENT Motion to adjourn the meeting made by MALINOWSKI and seconded by LEVITT at 1330 hours. Motion carried 6 to 0.