Greensburg, PA will be shelling out $100,000 after being ordered to do so by two state agencies over problems with city demolition projects.

The city will have to pay $80,000 more to have asbestos removed from buildings under demolition for parking areas. The city also is responsible for paying nearly $20,000 to Laudadio Excavation and Demolition for problems associated with last year's demolition of the fire-damaged apartment building at 303 E. Pittsburgh St.

Both matters were discussed after the city council meeting Monday.

The issue involving the parking areas arose after a state Department of Environmental Protection review of about 25 properties found more asbestos than did a review done for the city by a consultant, KCI Technologies Inc., of Hunt Valley, Md., Greensburg officials said.

"We have concerns about it," Mayor Karl Eisaman said of KCI's review, declining further comment.

Solicitor Tim McCormick said the city's options are being reviewed. He would not elaborate on what action the city might take.

"I would say the book is not closed on this," McCormick said.

In a report, KCI said three of approximately 25 properties bought by the city for the three parking areas had asbestos that required special care with removal, City Administrator Sue Trout said.

The cost to remove asbestos from those properties was included in the $1.34 million agreement reached with Ligonier Construction Co. to do the demolition and lot-paving work, she said.

The state environmental agency then inspected the buildings.
City officials said they were uncertain what triggered the agency's review.
No representative for KCI or the Department of Environmental Protection could be reached for comment last night.

The actual asbestos removal is being done by a subcontractor hired by Ligonier Construction.

City officials said the $80,000 will come from a $4 million loan the city took out to create the parking areas.

One of the parking areas is between West Otterman and West Pittsburgh streets, near the Greater Greensburg Sewage Authority Building. A second lot will be developed off Harrison Avenue and Seton Hill Drive, behind the Verizon office.

The third is located near St. Clair Park.

The demolition work is continuing.

In the other matter, the city will be paying $19,019.31 to Laudadio in wages and taxes not paid under prevailing wage requirements -- a minimum wage that must be paid when work costs more than $25,000 and public funds are used.

McCormick said he and city officials believed prevailing wage requirements
didn't apply because last year's demolition of the East Pittsburgh Street building was being done under emergency status.

The state Department of Labor and Industry determined otherwise and ordered the city to pay the extra money for the contractor to forward to workers.

Under the law, Greensburg had the duty to make sure prevailing wages were being paid, McCormick said.

A complaint filed with the state agency resulted in the state review, city officials said.

The original agreement with Laudadio was for $54,000.

The misunderstanding about the effect of the city's emergency declaration notwithstanding, McCormick said, the city would have had to pay the money originally.