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HomeMy WebLinkAbout2024-6-26 FOC Meeting MINUTES HERO TRAINING CENTER 6/26/2024 FACILITY OPERATIONS COMMITTEE 10125 85TH STREET SOUTH COTTAGE GROVE, MINNESOTA 55016 REGULAR MEETING MINUTES – 1:00 P.M. (In-person) 1. CALL TO ORDER Meeting called to order by board chair Jason Posel at 1301 P.M. The meeting was held in the conference room A at the HERO Center which is accessible to the public with all doors unlocked. 2. ROLL CALL HERO Admin Training Coordinator Bri Zeterlu took roll call. Committee members present: Pete Koerner (Cottage Grove), Jason Posel (Woodbury), Jennifer Levitt (Cottage Grove), Brenda Malinowski (Cottage Grove), and Clint Gridley (Woodbury). Others present: Dan Anselment (HERO Manager), Bri Zeterlu (HERO Admin Training Coordinator), Michael Pierson (Kraus-Anderson) and Tim Kittila (Kraus-Anderson). Virtual presentation by Crystal Raleigh (Cottage Grove). 3. PRESENTATIONS A. Kraus-Anderson Facility Assessment Presentation by Michael Pierson Michael Pierson informed the FOC committee that he and Tim Kittila would be presenting an executive summary concerning the capital improvement plan for the HERO center. Michael Pierson stated that he had met with Dan Anselment and Joe Montey (HERO Maintenance) to discuss items that needed replacement as well as “pain spots” for the property. The facility assessment index was 0.02 which indicates that the building is in “excellent” condition. Primary areas of concern were the water intrusion near the office area as well as in the RBT garage as well as concrete settlement issues. Michael Pierson advised that all of the facilities items were categorized and placed into the Kraus-Anderson portal which can be updated immediately. Clint Gridley asked if there was an annual fee to utilize the portal? Tim Kittila stated that the first 12 months are free of charge yet, after the 12-month period there is a fee of $1k per year. If you do not wish to use the portal, you can take the information and place it onto your own platform free of charge. Clint Gridley stated that there is nothing currently set aside in the budget for portal use and then inquired that this would be a 2026 fiscal year discussion not 2025. Dan Anselment confirmed that this would be a 2026 fiscal year discussion. Michael Pierson then presented the “FCA Initial Findings” to be focused on the: • Exterior enclosure near the main office where water is intruding. • Poor pitch under the garage door causing water intrusion. • Hufcor moveable wall system maintenance and repairs • Aesthetic Improvements such as re-sealing concrete floors Michael Pierson then discussed the “Facility Rating Summary”. Michael advised that the “priority 1” (items that need attention within 1-3 years are the following: • Parking lot sealant • Large stones cracking • Slab pitched towards the facility. • Rotating range carrier maintenance “Priority 2” (items that need attention within 6 years) are the following: • RBT wall maintenance/repairs • Mats replacement • Locker batteries “Priority 3” (items that need attention within 10 years) are the following: • Roof repair to be completed in 2024. Michael Pierson stated that the “Facility Condition Index” is .022 for the entire HERO building, .0020 for the split level and .0012 for the rambler. These numbers fall within the “excellent” score. Clint Gridley inquired is there was an annual depreciation number available? Tim Kittila stated that there is not one in the report, but he suggested 1-2% of the value of the building on an annual basis. Brenda Malinowski advised that HERO does have a depreciation value in the books of $477K per year with it depreciating over 40 years. The property was initially purchased for $19 million. Michael Pierson recommended spending $69K annually over the next 10 years. 2029 is projected to be the highest costing year for HERO. Clint Gridley then asked what the inflation construction percentage is? Tim Kittila advised that the inflation percentage is 2.94% yet, a 4% inflation is being utilized in the model. Clint Gridley inquired if $70K would be an appropriate number to create a capital improvement plan with a 4% increase annually? Michael Pierson agreed that this would be an appropriate number. Michael Pierson then provided a recap of the presentation advising that HERO is in excellent condition. Kraus-Anderson will send out an expert to review the water intrusion areas so that they can provide a more detailed report on what is needed to repair these issues. 4. CONSENT AGENDA A. HERO FOC Meeting Minutes – April 2, 2024 Staff Recommendation: Approve the meeting minutes from January 17, 2024, regular meeting. B. HERO FOC Special Meeting Minutes – April 29, 2024 Staff Recommendation: Approve the meeting minutes from April 2, 2024, special meeting. C. HERO FOC Special Meeting Minutes – June 3, 2024 Staff Recommendation: Approve the meeting minutes from June 3, 2024, special meeting. D. HERO Financial Statements – 2024 Budget to Actuals Recommendation: Receive Information Jason Posel asked for motion to approve the consent agenda. Motion made by Clint Gridley and 2nd by Jennifer Levitt Motion carried 5-0. 5. APPROVE DISBURSEMENTS A. Approve payments from 3/26/2024 to 6/20/2024 in the amount of $157,707.47. Jason Posel asked for motion to approve the disbursements. Motion made by Jennifer Levitt 2nd by Clint Gridley Motion carried 5-0. 6. REGULAR AGENDA A. Range Re-roof Project-Award Re-Construction Contract Staff Recommendation: • It is recommended that the HERO Center award the base bid for the roof reconstruction project to Diverse Construction Services in the amount of $269,437.00 plus the Unit Price items as recommended by the HERO Center Construction Representative based on field conditions. It is not recommended to award Alternate 1 and Alternate 2. • It is recommended that the HERO Center enter into the attached professional services contract with Inspec for 3rd Party construction observation services. • It is recommended that the HERO Center enter into the attached First Amendment to Agreement for Services - Hero Center Roof Replacement Project with Leo A Daly. Crystal Raleigh presented to the FOC committee via virtual and stated that the initial bidding process for the roof, we only received 1 bid. The deadline was reopened and on June 18th, 7 bids were received. Crystal Raleigh advised that there were two alternatives that the contractors could bid on (low foam or vapor barrier). The other alternative was unit price items (parapet sheeting and snow removal). Crystal Raleigh informed the FOC committee that the lowest bid was from Diverse Construction Services. Crystal Raleigh then addressed the third-party construction observation contracts stating that three vendors were emailed and two responded. This service would provide daily reports regarding the progress of the construction. Crystal Raleigh is suggesting that the FOC committee move forward with the “Inspec” vendor for this service. Finally, Crystal Raleigh suggested that HERO make an amendment to the engineering contract with Leo A Daly. Jennifer Levitt then asked Crystal Raleigh what Chris from the League of MN insurance trust (LMCIT) had informed her regarding the cost recovery for the roof project? Crystal Raleigh stated that Chris (LMCIT) informed her that everything concerning the roof repair is eligible for cost recovery except for the deductible. Jason Posel asked for a motion to approve the range re-roof project-award re-construction contract, approve the 3rd party Inspec contract, and enter into the First Amendment agreement of services contract. A motion was made by Brenda Malinoski 2nd by Clint Gridley Motion carried 5-0. B. HERO 2025 Budget Proposal Staff Recommendation: Preliminary review of 2025 Budget and provide direction regarding 2025 Budget. Dan Anselment informed the FOC committee that the HERO water heater was broken yet again. We are at ~$10,900 worth of repairs since its installation. Kraft Mechanical has stated that they will no longer work on the water heater as it is defective. The manufacture warranty expired, and previous work performed by another vendor voided any contract if it was still in the warranty period, which it is not. In 2023, HERO spent $4,300 on repairs and in 2024 another $4,300 to date. Anselment advised that it is not worth putting any more money into the current water heater and the unit must be replaced. Kraft Mechanical and Ryan Mechanical both provided bids to Dan Anselment and the following was stated: Kraft Mechanical: $19,300 for a new water heater installation with labor and supplies. Ryan Mechanical: $15,900 for two tankless systems installed with labor and supplies. Dan Anselment advised that this cost can most likely be consumed in the 2024 “mechanical” budget line-item code 2900-4372 but there are concerns that this is a non-budgeted item which could affect the budget closer to the end of the fiscal year. Dan Anselment suggested that the FOC committee go with Ryan Mechanical for this project at $15,900. Clint Gridley stated that this water heater project should be done now, and that the committee can reconcile at the end of the year. Gridley mentioned that as the board they approve this as a gross appropriation. If more funds are needed in the line item in the future, then board approval will be necessary to increase the funds at that time. Dan Anselment advised that the funds for the capital improvement plan from Kraus-Anderson are not currently in the proposed 2025 budget and a discussion amongst the board was necessary to decide how much money should be appropriated to the capital improvements. Jennifer Levitt inquired if the maintenance and repair budget line item would need to be increased? Discussion regarding whether there were expenditures in the 2900-4372 that were included in the $70k annual assessment. Brenda Malinoski stated that there appeared to be $25k that could be utilized for the annual assessment. Clint Gridley then inquired if you should take the operating budget and pull the capital budget below? Have a subtotal for the operating budget and pull over into the capital budget with $70k of annual charges? Gridley inquired if this should be upped 4% annually? Gridley stated to remove the $25k that would “fit” into the 2900–4372 line-item code and the remainder goes into a fund balance. Dan Anselment stated that he was comfortable with the decision if the board felt this was the best way to appropriate the funds, and that he was looking to the FOC for guidance on how to proceed given we don’t currently have a fund balance. Jennifer Levitt stated that this should balance out within the 10 years. Clint Gridley asked if the FOC committee would rather pay an annual fee of $70k and save up over the upcoming years rather than have a large expense arise in the future in which they have to obtain funds at that time? Consensus was the fund this annually. Discussion regarding whether the facility rentals reflect the depreciation cost. Dan Anselment stated that he does communicate with the other training facilities in the metro area and remain comparable with their fees. If we set our prices too high for the market, then the customers will go elsewhere or may stop utilizing HERO due to cost concerns. Gridley then stated that HERO needs to continue to fill more of the “shoulder” space. Levitt then inquired if anything needed to be highlighted in the budget proposal? Malinoski reviewed highlights of the 2025 budget. Rates for the range line item have been increased, ammunition line item has been altered to a more realistic scenario as well as the course registrations. The worker’s compensation insurance charge includes the new policy. Brenda Malinoski stated that they might want to consider funding 100% of deficits this time. Last year 75% of deficits were covered. Clint Gridley advised that 75% is a shared cost with 25% as a true-up number. Consensus was to continue this practice. Dan Anselment informed the FOC committee that another area for consideration is a truck for the HERO center. This has historically been an area of struggle for HERO as staff need the ability to move large items such as lumber and 55-gallon drums. When the need to move such items arises staff has to try to coordinate a vehicle pick up from public works or use their personal vehicles. Clint Gridley asked if HERO would have a need for plowing with this truck? Dan Anselment replied that the city plows during the day and that a private company plows during the night. Joe Montey was a plow driver for the city of Cottage Grove for years and would be capable of plowing for HERO and possibly able to consider removing the private plow contract in the future, or at a minimum could plow in the morning when the customers need access to the facility areas and the streets department hasn’t made it to HERO yet. Jennifer Levitt then asked if Adam Moshier (Public Works manager) provided a leasing fee for a HERO vehicle? Dan Anselment stated that he only obtained a price for purchasing a truck and not leasing. Clint Gridley advised that Woodbury could provide the lease agreement, fleet services, insurance coverage and licensing. Cottage Grove should cover the fuel as it would make more sense with where HERO is located. Jennifer Levitt stated that the lead time for the state contracts may delay receiving a vehicle for several months all the way into mid-year of 2025. Clint Gridley requested that Dan Anselment send him an email concerning the vehicle and vehicle accessory requests. He then asked if a new line-item code would need to be generated. Jennifer Levitt asked if a lease would need to be separate? Brenda Malinoski advised that they use a lease and fleet service line-item code. Jennifer Levitt then requested that Dan Anselment and Brenda Malinoski make a revision to the budget proposal to reflect this for the September meeting. Dan Anselment stated that in other news he has been in negotiations with another police department regarding them potentially coming to HERO as a tier two member. This is still in the infancy stages but relevant considering everyone is in budget season. Jason Posel advised that Century College is also interested in using HERO for a new skills program. Dan Anselment informed the FOC committee that he is meeting with Century College next week to provide a tour to Century and discuss what the college is looking for and what their needs are to see if there are any potential opportunities between both organizations. 7. ADJOURNMENT Board chair Posel asked for a motion to adjourn the meeting. Motion to adjourn made by Brenda Malinoski and seconded by Pete Koerner. Motion approved 5-0. Meeting adjourned at 14:21 P.M.