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ARDEN HILLS CITY COUNCIL - OCTOBER 13, 1998 3 . The Building Official has requested that the City Attorney notify the Court of the proceedings of the City Council. The City Attorney has informed Staff that they will be notifying the Court of the City Council's actions to date. At the previous City Council meeting, the property owner asked that, ifthe home is to he torn down, he he allowed to perfonn the demolition. Staff would have concerns about the owner's ability to tear the structure down within 30 days. Additionally, the property owner would be responsible for the sewer and water disconnects, removal of the foundation, and filling in the basement with suitable material and compacting and seeding that area. He would also have to obtain a demolition permit prior to beginning the work. Staff obtained three bids for the demolition in the event the Council chose to have the City conduct the work. The bids range from $7,200 to $14,500. Although the expenditure offunds for this activity was not accounted for in the 1998 budget, the City has received authorization from the Court to recover its cost through either an assessment on the property or a judgment against the property owner. The land values ofthe surrounding properties range from $37,100 to $51,000 and such an assessment would appear likely to be recovered. Mr. Ringwald advised that Staff recommends authorizing Ray Anderson & Sons to proceed with the demolition of the home located at 1369 Forest Lane and assess all the costs of the project against the subject property. . Mr. Nixon stated that as of last Friday, he was ready to proceed. He then discovered Staff did not believe he could complete the project for the $30,000 he plans to borrow. He noted his contractor, Mr. Steve Kmger, is present with price lists showing it can be done for this amount of money. He indicated his private lender is concerned that the City is stating they want control of the money. Mr. Ringwald indicated that the City does not want control of the money but would like to either see the check or some sort of assurance that the money is available. Mr. Kruger stated the City wanted him to have a State Contractors License and noted he has been doing this work for 27 years and has never needed one before. He stated he has gone to the Department of Commerce and was told that as long as he is not making more than $15,000 on the project, he can obtain the license free of charge. He has filled out the application and was assured it will be approved. Regarding the financing issue, he stated the Council may call the lender, Mr. Gary Wisner, between 9:00 and 10:00 a.m. tomorrow to verify the financing. Mr. Wisner can provide information to the Council and his accountant can confirm there will be $30,000 put aside tomorrow, in an account, for the project. Mr. Kruger gave the Council Mr. Wisner's phone number. Mr. Kruger stated that the belief of the City that the project cannot be done for less than $60,000 is incorrect and he has compiled a list of the materials needed and their cost as of this weekend's prices. The project is set up to be delivered in separate loads. The first load, consisting of . materials to complete the entire second floor and the roof, is planned to be delivered this week. Mr. Kruger reviewed the pricing of all the materials and concluded the total price for materials will be $14,898. With the additional cost of$l,OOO for the permit, the total cost will be just under $16,000. The remaining balance of the $30,000 will cover the cost oflabor. He has five people scheduled to begin the work immediately who are committed to working quickly to meet --