2009-01-27MOUND HOUSING AND REDEVELOPMENT AUTHORITY
JANUARY 27, 2009
The Housing and Redevelopment Authority in and for the City of Mound, Minnesota met
in regular session on Tuesday, January 27, 2009, at 7:10 p.m. in the council chambers
of city hall.
Members present: Chair Mark Hanus; Commissioners David Osmek, Ray Salazar, Heidi
Gesch, and Greg Skinner
Others Present: City Attorney Jon Dean, Executive Director Kandis Hanson, City Clerk
Bonnie Ritter, Finance Director Catherine Pausche, Ken Perbix, Kevin Borg, Amanda
Schwarze
1. Open meeting
Chair Hanus called the meeting to order at 7:19 p.m.
2. Approve agenda
MOTION by Osmek, seconded by Gesch to approve the agenda. All voted in favor.
Motion carried.
3. Approve minutes
MOTION by Osmek, seconded by Gesch to approve the minutes of the November 25,
2008 and December 9, 2008 meetings. All voted in favor. Motion carried.
4. Indian Knoll Manor Manager's Monthly Report
A. Approve 2009 budget: MOTION by Osmek, seconded by Salazar to approve the
2009 budget. All voted in favor. Motion carried.
B. Approve resolution reiecting proposals for property management services and
terminating the current outside management agreement with Westport Properties
Hanus questions if operating Indian Knoll Manor should really be a mission of the
City. He prefers moving it into private hands He is aware that this ties into
another item later in the evening and questioned if new management would live
up to what Westport has done. Pausche thinks that a higher level of
management will be brought in by utilizing a person from the Police Department
to work half days as manager of Indian Knoll Manor. Hanus expressed that he
feels that the Board should have had more background information to approve
this, such as what the job responsibilities include and what the different staff
people do. Pausche stated that the part time property manager will fill vacancies
and screen applicants and perform some target marketing to fill vacancies.
Hanus also questioned if this part time position requires any technical expertise
and how maintenance issues will be handled. Pausche stated that is when the
City department will assist with things as maintenance, snow plowing, etc.
Osmek asked about the cost of the change in management and Pausche
referred him to the budget that was submitted for approval. The project should
breakeven with the operating subsidy from HUD and no other HRA funds will be
required to subsidize. The City will now begin charging the HRA administrative
fees for services provided by the Executive Director, Finance Department and
Mound HRA Minutes -January 27, 2009
other city departments, which equates to $30,000 per year. In addition, the
Police Department Administrative Assistant will be split 50/50 between the
Police and the HRA, beginning February 1, 2009.
MOTION by Osmek, seconded by Skinner to adopt the following resolution. The
following voted in favor: Osmek, Gesch, and Skinner. The following voted
against: Salazar and Hanus. Motion carried.
RESOLUTON NO. 09-01H: RESOLUTION REJECTING PROPOSALS FOR
PROPERTY MANAGEMENT SERVICES AND TERMINATING THE CURRENT
OUTSIDE MANAGEMENT AGREEMENT WITH WESTPORT PROPERTIES
C. Approve bills: MOTION by Osmek, seconded by Salazar to approve payment of
claims in the amount of $24,287.59 for December, 2008. All voted in favor.
Motion carried.
D. Approve resolution makinct a selection not to waive the statutory tort limits for
liability insurance purposes.
MOTION by Osmek, seconded by Salazar to adopt the following resolution. All
voted in favor. Motion carried.
RESOLUTION NO. 09-02H: RESOLUTION MAKING A SELECTION NOT TO
WAIVE THE STATUTORY TORT LIMITS FOR LIABILITY INSURANCE
PURPOSES
5. Recess meeting
MOTION by Osmek, seconded by Salazar to recess the HRA meeting at 7:35 p.m. All
voted in favor. Motion carried.
6. Reconvene meeting, held iointly with Mound City Council Meeting
The HRA meeting reconvened at 7:50 p.m., running concurrently with the City Council
meeting.
7. Operation Black Cat emergency trainingt exercise
A. Recap of status of properties on Shoreline Drive.
Catherine Pausche gave an overview of the proposed training exercise that is to take
place on May 2, 2009. This exercise will be performed by the Lake Area Emergency
Management Group and take place in the 5500 block of Shoreline Drive. The group has
received a $25,000 federal grant to conduct a large scale emergency preparedness
exercise to include all disciplines of local government including police, fire, public works,
and emergency medical services. The four properties targeted for this exercise are
5533/5545/5555/5567 Shoreline Drive. The group has determined that this area is large
enough to manage the full scale operation and can safely accommodate partial
structural collapse, control burns, and prop staging. The City owns all of these properties
except 5567 Shoreline Drive and has an option agreement for this parcel, which will
terminate on March 15, 2009. This agreement provides for amendment and extension.
Total project costs are estimated between $85,000 and $100,000 for building demolition
and asbestos/regulated waste removal activities. Pausche indicated that costs for the
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HRA Minutes -January 27, 2009
total demolition and remediation following the exercise could be financed through TIF
District 1-3. These costs are separate and not included in the $25,000 federal grant.
The grant is for the actual exercise itself, not the property demolition and remediation.
Pausche verified that no City funds will be expended for the actual exercise because that
is all covered by the grant.
B. Discussion/action adopting resolution approving addendum to Option Agreement for
property at 5567 Shoreline Drive (HRA action item)
MOTION by HRA Commissioner Osmek, seconded by Salazar to adopt the following
resolution. It was noted that this approval is for the revised addendum handed out prior
to the meeting as prepared by John Dean. All voted in favor. Motion carried.
RESOLUTION NO. 09-03H: RESOLUTION APPROVING ADDENDUM TO OPTION
AGREEMENT FOR PROPERTY AT 5567 SHORELINE DRIVE
C. Discussion/action on financing plan for Operation Black Cat exercise with funding to
be provided by TIF 1-3 (HRA action item)
MOTION by HRA Commissioner Osmek, seconded by Salazar to approve the financing
plan for the Operation Black Cat demolition and remediation, with funding to be provided
by TIF-1-3. All voted in favor. Motion carried.
D. Discussion/action on financing plan for the Operation Black Cat exercise including
acceptance and use of $25,000 grant for emergency response training (City Council
action item)
MOTION by Councilmember Osmek, seconded by Salazar to approve the financing plan
for the Operation Black Cat exercise and accept the use of the $25,000 grant for
emergency response training. All voted in favor. Motion carried.
8. Adjourn
MOTION by Commissioner Osmek, seconded by Salazar to adjourn the meeting at 8:09
p.m. All voted in favor. Motion carried.
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Attest: Bonnie Ritter, City Clerk
Chair Mark Hanus
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MOUND HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO.09-01 H
RESOLUTION REJECTING PROPOSALS FOR PROPERTY MANAGEMENT
SERVICES AND TERMINATING THE CURRENT OUTSIDE MANAGEMENT
AGREEMENT WITH WESTPORT PROPERTIES
WHEREAS, The Mound Housing and Redevelopment Authority operates a 50-unit
public housing facility at 2020 Commerce Boulevard, referred to as Indian Knoll Manor
Apartments; and
WHEREAS, it has been determined through review and analysis of the current
management arrangement and review of the proposals to provide management services
that the City can achieve greater efficiency and accountability by managing the property
with City and HRA employees; and
WHEREAS, budget shortfalls necessitate the need to increase the sharing of City
administrative resources;
NOW, THEREFORE BE IT RESOLVED by the Housing and Redevelopment Authority in
and for the City of Mound, Minnesota, to reject all proposals submitted to provide
property management services for Indian Knoll Manor Apartments and to cancel the
current contract with Westport Properties as of February 28, 2009.
Adopted this 27th day of January, 2009.
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Attest: Bonnie Ritter, City Clerk
Chair Mark Hanus
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO. 09-02H
RESOLUTION MAKING A SELECTION NOT TO WAIVE THE STATUTORY TORT
LIMITS FOR LIABILITY INSURANCE PURPOSES
WHEREAS, pursuant to previous action taken, the League of Minnesota Cities
Insurance Trust has asked the Housing and Redevelopment Authority in and for the City
of Mound to make an election with regards to waiving or not waiving its tort liability
established by Minnesota Statutes 466.04; and
WHEREAS, the choices available are; to not waive the statutory limit, to waive the limit
but to keep insurance coverage at the statutory limit, and to waive the limit and to add
insurance to a new level;
NOW, TEHREFORE BE IT RESOLVED by the Housing and Redevelopment Authority in
and for the City of Mound, Minnesota, to hereby elect not to waive the statutory tort
liability established by Minnesota Statutes 466.04; and that such election is effective until
amended by further resolution of the Mound HRA.
Adopted this 27th day of January, 2009.
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Attest: Bonnie Ritter, City Clerk
Chair Mark Hanus
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION N0.09-03H
RESOLUTION APPROVING ADDENDUM TO OPTION AGREEMENT FOR PROPERTY AT
5567 SHORELINE DRIVE
WHEREAS, the parties did, on or about March 13, 2008, enter into a certain agreement entitled
Option Agreement ("Agreement") whereby Sellers granted to the HRA, an option to purchase a
tract and parcel of land having a street address of 5567 Shoreline Drive and legally described as
Lot 1, Auditor's Subdivision No 170 ("Property"); all subject to the provisions of the Agreement.
The Agreement remains in full force and effect; and
WHEREAS, the Agreement contemplated that, upon exercise of the option, the HRA would
demolish the structures located on the Property following closing. The cost of demolition, less
certain environmental costs, would be borne by the HRA; and
WHEREAS, due to the building's proximity to contiguous HRA-owned buildings which are planned
to be used and demolished for an emergency services training exercise, removal of the structure
on the Property prior to any determination by the HRA to exercise the option is in the best interests
of the parties and also allows the Property to be included in the training exercise; and
WHEREAS, the purpose of this Addendum to provide for such training and early demolition, and to
set forth the agreements and understandings of the parties regarding such matters; and
WHEREAS, the terms of Section 4 of the Agreement includes a provision to allow the HRA to
execute an extension by providing written notice and payment of a Subsequent Option Payment to
the Seller, which is an amount equal to the real estate taxes and installments on special
assessments due and payable in each year of the extension, to be made on or before the
expiration of the Agreement; and
WHEREAS, the expiration date of the current Agreement is March 15, 2009.
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for
the City of Mound, Minnesota hereby approves the Addendum to Option Agreement by and
between the Mound Housing and Redevelopment Authority and the owner(s) of the property
located at 5567 Shoreline Drives and also extends the Option Agreement to March 15, 2010
pursuant to Section 4 of the Agreement.
BE IT FURTHER RESOLVED by the Housing and Redevelopment Authority in and for the City of
Mound to hereby authorize the Executive Director and her designees to execute all said
document(s) related to the Option Agreement and Addendum to the Option Agreement.
Adopted by the HRA this 27~' day of January 2009
Attest: Bonnie Ritter, City Clerk
_ Chairperson Mark Hanus