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2009-01-27 PLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS. ~' AGENDA ~d~~-~ MOUND HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING TUESDAY, JANUARY 27, 2009 7:10 P.M. . MOUND CITY COUNCIL CHAMBERS Page 1. Open meeting 2. Action approving agenda 3. Action approving minutes: November 25, 2008 1-2 December 9, 2008 3 4. Indian Knoll Manor Manager's Monthly Report A. Approve 2009 Budget 4-13 B. Approve Resolution Rejecting Proposals for Property 14-15 Management Services and Terminating the Current Outside Management Agreement with Westport Properties C. Approve bills (not in packet) D. Approve resolution making a selection not to waive the 16-17 statutory tort limits for liability insurance purposes 5. Recess meeting 6. Reconvene meeting, held jointly with Mound City Council Meeting 7. Operation Black Cat emergency training exercise 18-25 A. Recap of status of properties on Shoreline Drive B. Discussion/action adopting resolution approving addendum to Option Agreement for property at 5567 Shoreline Drive (HRA Action Item) C. Discussion/action on financing plan for the Operation Black Cat exercise with funding to be provided by TIF I-3 (HRA Action Item) 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) ~. Adjourn MOUND HOUSING AND REDEVELOPMENT AUTHORITY • NOVEMBER 25, 2008 The Housing and Redevelopment Authority in and for the City of Mound, Minnesota met in regular session on Tuesday, November 25, 2008, at 7:00 p.m. in the council chambers of city hall. Members present: Chair Mark Hanus; Commissioners Mike Specht, John Beise, and Greg Skinner Members absent: Commissioner David Osmek Others Present: Executive Director Kandis Hanson, Community Development Director Sarah Smith, Finance Director Catherine Pausche, Ken Perbix, Cindy Reiter 1.Open meeting Chair Hanus called the meeting to order at 7:00 p.m. 2. Approve agenda MOTION by Beise, seconded by Skinner to approve the agenda. All voted in favor. Motion carried. 3. Approve minutes MOTION by Beise, seconded by Skinner to approve the minutes of November • 10, 2008. The following voted in favor: Hanus, Beise and Skinner. The following voted against: None. Specht abstained from voting. Motion carried. 4. Indian Knoll Manor Manager's Monthly Report Cindy Reiter presented the manager's report as follows: A. October bank statement B. October income statement C. Review of bills paid: MOTION by Beise, seconded by Skinner to approve payment of bills for October, 2008. All .voted in favor. Motion carried. D. Manager's report: There are currently three vacancies that are being advertised for. 5. Request for Proposal Responses for Potential Options for Indian Knoll Manor Kandis Hanson stated that the City has put out a request for proposals for management firms for Indian Knoll Manor. Pausche stated she has contacted HUD and they indicated that it is rare that a city the size of Mound manage public housing because of the expertise, resources and staff time that it entails. Discussion with HUD came up with four alternatives: (1) keep facility and outsource property management; (2) create a cooperative agreement with another housing authority to take over the building; (3) cancel the contract with • -1- Mound HRA Minutes -November 25, 2008 HUD and another housing authority takes ownership and oversight of the building; or (4) cancel the contract with HUD and sell the building outright. Common Bond and Westport Properties have responded to the RFP. Pausche will review these proposals and come back to the HRA with a recommendation. Hanus stated he would want to know how our status would be affected regarding affordable housing, and where the financials lie, to include major repairs. Consideration would have to be given to maintaining the standards of the building, and he also asked what can be done with the proceeds if the building is sold. Pausche stated she will research these items for future consideration and discussion. 6. Adjourn MOTION by Specht, seconded by Beise to adjourn at 7:18 p.m. All voted in favor. Motion carried. Chair Mark Hanus Attest: Bonnie Ritter, City Clerk -2- .... ~ MOUND HOUSING AND REDEVELOPMENT AUTHORITY • DECEMBER 9, 2008 The Housing and Redevelopment Authority in and for the City of Mound, Minnesota met in regular session on Tuesday, December 9, 2008, at 7:25 p.m. in the council chambers of city hall. Members present: Chair Mark Hanus; Commissioners David Osmek, Mike Specht, John Seise, and Greg Skinner Others Present: City Attorney Jon Dean, Executive Director Kandis Hanson, City Clerk Bonnie Ritter, Community Development Director Sarah Smith, Finance Director Catherine Pausche, Ken Perbix 1. Open meeting Chair Hanus called the meeting to order at 7:25 p.m. 2. Approve agenda MOTION by Seise, seconded by Osmek to approve the agenda. All voted in favor. Motion carried. 3. Action on interim agreement with Westport Properties Pausche reviewed the purpose for the interim agreement in that RFP's have • been requested for this service and they will be considered at a later meeting. MOTION by Osmek, seconded by Beise to approve the interim agreement with Westport Properties for Indian Knoll Manor Property Management Services for the period January 1, 2009 through March 31, 2009. All voted in favor. Motion carried. MOTION by Osmek, seconded by Specht to amend the agenda to add Item 3A, Ken Perbix. All voted in favor. Motion carried. 3A. Ken Perbix Ken Perbix asked the HRA if there was any progress on talks to purchase his property on Commerce Blvd. Hanus stated that he was not aware of any change and Sarah Smith stated she will keep him updated of any upcoming progress. 4. Adiourn MOTION by Specht, seconded by Beise to adjourn at 7:33 p.m. All voted in favor. Motion carried. Attest: Bonnie Ritter, City Clerk Chair Mark Hanus -3- PHA Board Resolution us. Department of Housing OMB No. 2577-0026 Approving Operating Budget and Urban Development (exp. 10/31/2009) Office of Public and Indian Housing - Real Estate Assessment Center (PIH-REAC) Public reporting burden for this collection of information is estimated to average 10 minutes per response, induding the time for reviewing instructions, searching existing data sources, gathering end maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. This information is required by Section 6(c)(4) of the U.S. Housing Act of 1937. The information is the operating budget for the low-income public housing progrem and provides e summary of the proposed/budgeted receipts and expenditures, approval of budgeted receipts and expenditures, and justification of certain spedfied amounts. HUD reviews tha information to determine if the operating plan adopted by the public housing agency (PHA) and the amounts are reasonable, and that the PHA is in compliance with procedures prescribed by HUD. Responses are required to obtain benefits. This information does not lend itself to confidentiality. PHA Name:. Mound HRA PHA Code: MN074 PHA Fiscal Year Beginning: 2009 Board Resolution Number: Acting on behalf of the Board of Commissioners of the above-named PHA as its Chairperson, I make the following certifications and agreement to the Department of Housing and Urban Development (HUD) regarding the Board's approval of (check one or more as applicable): ^X Operating Budget approved by Board resolution on: ^ Operating Budget submitted to HUD, if applicable, on: ^ Operating Budget revision approved by Board resolution on: ^ Operating Budget revision submitted to HUD, if applicable, on: I certify on behalf of the above-named PHA that: 1. All statutory and regulatory requirements have been met; DATE 01 /27/2009 2. The PHA has sufficient operating reserves to meet the working capital needs of its developments; 3. Proposed budget expenditure are necessary in the efficient and economical operation of the housing for the purpose of serving low-income residents; 4. The budget indicates a source of funds adequate to cover all proposed expenditures; 5. The PHA will comply with the wage rate requirement under 24 CFR 968.110(c) and (f); and 6. The PHA will comply with the requirements for access to records and audits under 24 CFR 968.110(1). I hereby certify that all the information stated within, as well as any information provided in the accompaniment herewith, if applicable, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012.31, U.S.C. 3729 and 3802) Print Board Chairperson's Name: Signature: Date: Mark Hanus 01/25/2009 Previous editions are obsolete form HUD-52574 (08!2005) -4- Operating Budget u.s. Department of Housing "OMB Approval No. 2577-0026 (exp. 9/30/2006) and Urban Development Office of Public and Indian Housing ~e page four for instructions and Public reporting burden statement a. T e of Submission X Original ~ Revision No.: b. Fiscal Year Ending 12/31 /09 c. No. of months (check one) X 12 mo. ~ Other (spe ' d. T of HUD assisted project(s) Ot X PHA/IHA-Owned Rental Housing e. Name of Public Housing Agency/Indian Housing Authority (PHAIIHA) MOUND HOUSING AUTHORITY 02 IHA Owned Mutual Help Homeowmership o3 QPHA/IHA Leased Rental Housing f. Address (city, State, zip code) 5341 Maywood Road MOUND, MN 55364 04 ~ PHA/IHA Owned Turnkey III Homeownership 05 ^ PHA/IHA Leased Homeownership g. ACC Number C-858 h. PAS/LOCCS Project No. MN07400109D i. HUD Fietd Office '. No. of Dwellin nits U J 9 8 k No. of Unit Mont hs vailable 576 . No. of Pro' ects 1 Actual Last Fiscal ^X Estimates ~or Actual Re nested Bud et Estimates Yr. Current Budget yr. PHAIIHA Estimates HUD Mod cations Line Acct. 09/30/07 09/30/08 Amount Amount No. No. Description (~) PUM t2) PUM (3) PUM t4) (to nearest $10) (5) PUM (6) (to nearest $10) t7) Homebuyers Monthly Payments for: 010 7710 O eratin Ex ense 0.00 030 7714 Nonroutine Maintenance Reserve 0.00 040 Total Break-Even Amount sum of lines 010, 020, and 030 0.00 0.00 0.00 0 060 7790 Homebu ers Monthi Pa ments -Contra 0.00 Operating Receipts 070 3110 Dweliin Rental 228.90 229.93 230.56 132,800 0 3120 Excess Utilities 1.26 1.32 1.32 760 3190 Nondwellin Rental 0.00 0 Total Rental Income sum of lines 070, 080, and Oso 230.16 231.25 231.88 133,560 110 3610 Interest on General Fund Investments 0.08 0.09 0.09 50 120 36so Other Income 11.14 6.94 7.47 4,300 130 Total Rental Income sum of lines 100, 110, and 120 241.38 238.28 239.43 137,910 Operating Expenditures -Administretion: 140 4112 Administrative Salaries - Mana er 55.32 56.42 61.67 $ ~ ~, 41104 Administrative Benefits 9.61 13.35 0.00 ~ 150 4130 Le al ense 1.05 1.74 1.74 1,000 , 160 4140 StaffTrainin 0.48 0.87 0.87 --fi9~ U47f~ 170 4150 Travel 0.69 0.87 500 180 4170 Accountin Fees 4.61 4.34 4.34 2,500 1so 4171 Auditih Fees 8.68 13.02 8.68 5 000 200 4190 Other Administrative Ex enses 25.94 46.44 55.94 32,220 4195 0 ,' v ccr.~, l-~n 17.71 17.71 18.75 "'f$CB6~ ,~ p 2, 210 Total Administrative Ex ense sum of line 140 thru line 200 123.40 154.58 134.10 did Tenant Services: 220 4210 Salaries 0.00 0 230 4220 Recreation, Publications and Other Services 0.35 0.69 400 240 4230 Contract Costs, Trainin and Other 1.74 1,000 250 Total Tenant Services E ense sum of lines 220, 230, and 240 0.00 0.35 2.43 1,400 Utilities: 260 4310 Water 5.61 5.56 5.83 3,360 270 4320 Electrici 35.20 33.94 32.40 18,660 280 4330 Gas 53.09 48.99 43.61 25,120 290 4340 Fuel 0.00 0 300 4390 Other Utilities Ex ense 26.01 24.15 25.36 14,605 310 4391 Garba a Removal 7.72 9.38 7.07 4,070 320 Total Utilities Ex ense sum of line 260 thru line 310 127.63 122.02 114.26 65,815 0.00 Previous editions are obsolete Page 1 of 4 form HUD-52564(3195) ref. Handbook 7475.1 -5- Name of PHA/IHA Fiscal Year Ending MOUND HOUSING AUTHORITY 12/31/09 Actual Last Fiscal X^ ~ Estimates or Actual Yr. currem audget vr. HUD Mod cations Line Acct. 09/30/07 09/30/08 Amount Amount No. No. Description (1) PUM (2) PUM (3) PUM (4)• (to nearest $10) (5) PUM (6) (to nearest $10) (7) Ordinary Maintenance and Operation: 330 4410 Labor 62.28 59.03 65.57 37,770 44104 Maintenance Benefits 10.14 13.96 0.00 0 340 4420 Materials 12.26 13.54 8.33 4,800 350 4430 Contract Costs 33.78 28.14 30.24 17,420 360 Total Ordina Maintenance & O ration Ex nse lines 330 to 350 118.46 114.67 104.15 59,990 Protective Services: 370 4460 Labor 0.00 390 4480 Contract Costs 0.29 1.22 0.00 400 Total Protective Services Ex ense sum of lines 370 to 390 0.29 1.22 0.00 0 General Expense: 410 4510 Insurance 7.40 21.18 13.72 7,900 420 4520 Pa ments in Lieu of Taxes 5.13 5.46 5.88 3,387 430 4530 Terminal Leave Pa ments 0.00 440 4540 Em to ee Benefits Contributions S lit to Adm & Maint 0.00 450 4570 Collection Losses 1.92 4.34 2,500 460 4590 Other General Ex ense 0.00 470 Total General Ex ense sum of lines 410 to 460 10.61 26.64 23.94 13,787 480 Total Routine ense sum of lines 210, 250, 32D, 3so, 400, and 470 380.39 419.48 378.88 218,232 Rent for Leased Dwellings: 490 4710 Rents to Owners of Leased Dweliin s 0.00 500 Total O eratin Ex ense sum of lines 480 and 490 380.39 419.48 378.88 218,232 Nonrout[ne Expendltures: 510 4610 Extraordina Maintenance 0.00 0 520 7520 Re lacement of Nonex endable E ui ment 0.00 0 530 7540 Pro a Betterments and Additions 0.00 0 540 Total Nonroutine Ex enditures sum of lines 510, 520, and 530 0.00 0.00 0.00 0 550 Total O eratin Ex enditures sum of lines 500 and 540 380.39 419.48 378.88 218,232 Prior Year Adjustments: 560 6010 Prior Year Adjustments Affectin Residual Recei is 0.03 0.00 Other Expenditures: 570 Deficienc ih Residual Recei is at End of Precedin Fiscal Yr. 0.00 580 Total Operating Expenditures, including prior year adjustments and other ex enditures line 550 lus or minus line 560 lus line 570 380.36 419.48 378.88 B- ~ / ] I 590 Residual Receipts (or Deficit) before HUD Contributions and rovision for o eratin reserve line 130 minus line 580 138.98 181.20 139.45 ~ ~ da C) HUD Contributions: 600 8010 Basic Annual Contribution Eamed-Leased Pro'ects:Current Year 0.00 610 8011 Prior Year Adjustments - Debit Credit 0.00 620 Total Basic Annual Contribution line 600 lus or minus line 610 0.00 0.00 0.00 0 630 8020 Contributions Eamed-O .Subsid :-Cur. Yr. before ear-end ad') 151.72 122.50 139.45 $~3'P2' ~ 640 Mandato PFS Ad~ustments net : 0.00 650 Other s eci 0.00 660 Other s eci 0.00 670 Total Year-End Ad'ustments/Other lus or minus lines 640 thru 660 0.00 0.00 0.00 0 660 8020 Total O eratin Subsid -current ear (Ilne 630 plus or minus line 6~D) 151.72 122.50 139.45 ~89r32~ 1 C i5 690 Total HUD Contributions sum of lines 620 and 680 151.72 122.50 139.45 8t Q ~ ' 700 Residual Receipts (or Deficit) (sum of line 590 plus line 690) Enter here and on line 810 12.74 58.70 0.00 0 form HUD-52564(3/95) Previous editions are obsolete Page 2 of 4 ref. Handbook 7475.1 -6- 1- of PHA/IHA MOUND HOUSING AUTHORITY LL Fiscal Year Ending 12/31 /09 PHA/IHA HUD Part I - Maximum O eratln Reserve -End of Current Bud et Year 740 2821 PHAlIHA-Leased Housing -Section 23 or 10(c) 50% of Line 480. column 5. form HUD-52564 Part II-Provision for and Estimated or Actual O eratin Reserve at Fiscal Year End 780 O eratin Reserve at End of Previous Fiscal Year -Actual for FYE date 790 Provision for Operating Reserve -Current Budget Year (check one) Estimated for FYE Actual for FYE 800 Operating Reserve at End of Current Budget Year (check one) ^X Estimated for FYE Actual for FYE N/A 810 Provision for Operating Reserve -Requested Budget Year Estimated for FYE Enter Amount from line 700 p 820 Operating Reserve at End of Requested Budget Year Estimated for FYE Sum of lines 800 and 810 0 Cash Reserve Requirement- 25 °h Of line 4B0 0 Comments PHA / IHA Approval Name Title Signature Date Field Office Approval Name Title • Signature Date form HUD-52564(3/95) Previous editions are obsolete Page 3 of 4 ref. Handbook 7475.1 -]- Operating Budget U.s. Department of Housing OMB Approval No. 2577-0026 (Exp. 9/30/2006) Schedule of Administration and Urban Development Expense Other Than Salary Office of Public and Indian Housing Public Reporting Burden for this collection of infonmation is estimated to average 1 hour per response, including the time for reviewing instructions, searchin existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless that collection displays a valid OMB control number . This information is required by Section 6 (c)(4) of the U.S. Housing Act of 1937. The information is the operating budget for the low-income housing progr; and provides a summary of proposed budgeted receipts and expeditures, approval of budgeted receipts and expenditures, and justifications of certain specifies amounts. HUD reviews the information to determine if the operating plan adopted by the PHA and the amounts are reasonable and that the PHA is in compli with procedures prescribed by HUD. Responses are required to obtain benefits. This information does not lend itself to confidentiality. Name of Housing Authority: MOUND HOUSING AUTHORITY Locality: MOUND, MN 55364 Fiscal Year End: 12/31/09 (1) Descri tion (2) Total (3) Mana ement (4) Develo ment (5) Section 8 (6) Other 1 Le al Ex ense (see S ecial Note in Instruction 1,000 1,000 2 Trainin (list and rovide 'ustification 500 500 3 Travel Tri s To Conventions and Meetin s (list and rovide 'ustification 0 4 Other Travel: Outside Area of Jurisdiction 0 5 Within Area of 'urisdiction 500 500 6 Total Travel 500 500 0 0 0 7 Accountin 2,500 2,500 8 Auditin 5,000 5,000 9 Sundry Rental of Office S ace 0 10 Publications 600 600 11 Membershi Dues and Fees list or anization and amount 400 400 12 Tele hone, Fax, Electronic Communications 2,220 2,220 13 Collection A ent Fees and Court Costs 0 14 Administrative Services Contracts (Outside Mana ement) 10,800 10,800 15 Forms, Station and Office Su lies 4,000 4,000 16 Other Sund Ex ense 25,000 25,000 17 Total Sund 43,020 43,020 0 0 0 18 Total Administrative Expense Other Than Salaries 52,520 52,520 0 0 0 To the best of my knowledge, all of the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802) Signature of authorized representative & Date: X form HUD-52571(3/95) Page 1 of 2 ref Handbook 7475.1 -$- L-, Operating Budget Summary of Budget Data and Justifications U.S. Department of Housing ^oM6 Approval No. 2577-0026 (Exp. 9l3D/2006) and Urban Development Office of Pubic and Indian Housing Public Reporting burden for this collection of information is estimated to average 45 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless that collection displays a valid OMB control number. This information is required by Section 6 (c)(4) of the U.S. Housing Act of 1937. The information is the operating budget for the low-income housing program and provides a summary of proposed/budget receipts and expeditures, approval of budgeted receipts and expenditures, and justification of certain specified amOUntS. HUD reviews the information to determine if the operating plan adopted by the PHA and the amounts are reasonable and that the PHA is in compliance with procedures perscribed by HUD. Responses are required to obtain benefits. This information does not lend itself to confidentiality. MOUND HOUSING AUTHORITY fzeceipts 12/31/09 Dwelling Rental: Explain basis for estimate. For HUD-aided low-rent housing, other than Section 23 Leased housing, state amount of latest available total H/A monthly rent roll, the number of dwelling units available for occupancy and the number accepted for the same month end. Cite HA policy revisions and economic and other factors which may result in a greater or lesser average monthly rent roll during the Requested Budget Year. For Section 23 Leased housing, state the number of units under lease, the PUM lease price, and whether or not the cost of utilities is included. If not included, explain method for payment at utility costs by HA and/or tenant. Rent Roll for 10/01/D8 10615 Units Occupied 46 X 1.03 Actual Occupancy Percentage X 97% Units Months Available X 576 TOTAL: 132,800 Excess Utilities: (Not "for Section 23 Leased housing.) Check appropriate spaces in item 1, and explain "Other". Under item 2, explain basis for deternining excess utility consumption. For example, Gas; individual check meters at OH-100-1, proration of excess over allowances at OH-100-2, etc. Cite effective date of present utility allowances. Explain anticipated changes in allowances or other factors which will cause a significant change in the total amount of excess utility charges during the Requested Budget Year. 1. Utility Services Surcharged: Gas ~ Electricity XD Other (Specify} 2. Comments A/C 760 TOTAL: 760 Nondwelling Rent: (Not for Section 23 Leased Housing.) Complete Item 1, specifying each space rented, to whom, and the rental terms. For example: Communit Building Space -Nursery School - $50 per month, etc. Cite changes anticipated during the Requested Budget Year affecting estimated Non-dwelling Rental Income. Space Rented 2. Comments To Whom TOTAL: 0 Rental Terms form HUD-52573 (3/95} Previous Editions are obsolete Page 1 of 4 ref Handbooks 7475.1 -9- Interest on General Fund Investments: State the amount of present General Fund investment and the percentage of the General Fund it represents. Explain circumstances such as increased or decreased operating reserves, dwelling rent, operating expenditures, etc., which will affect estimated average monthly total investments in the Requested Budget Year. Explain basis for distributions of interest income between housing programs. 50 TOTAL: 50 Other Comments on Estimates of Operating Receipts: Give comments on all other significant sources of income which will present a clear and understanding of the HA's prospective Operating Receipts situation during the Requested Budget Year. For Section 23 Leased housing explain basis for estimate of utility charges to tenants. LAUNDRY 3,900 DAMAGES & MISC CHARGES 400 TOTAL: 4,3D0 Operating Expenditures Summary of Staffing and Salary Data Complete the summary of information below on the basis of information shown on form HUD-52566, Schedule of all Positions and salaries, as follows: Column (1) Enter the total number of positions designated with the corresponding account line symbol as shown in Column (1), form HUD-52566. Column (2) Enter the number of equivalent full-time positions allocable to HUD-aided housing in management. For example: A HA has three "A-NT' positions allocable to such housing at the rate of 80%, 70%, and 50% respectively. Thus, the equivalent full-time position is two. (8110 + 7/10 + 5/10). Column (3) Enter the portion of total salary expenses shown in Column (5) or Column (6), form HUD-52566, allocable to HUD-aided housing in management, other than Section 23 Leased housing Column (4) Enterthe portion of total salary expenses shown in Column (5) or Column (10), form HUD-52566, allocable to Section 23 Leased housing in management. Column (5) Enter the portion of total salary expense shown in Column (5) or Column (7), form HUD-52566, allocable to Modemization programs (Comprehensive Improvement Assistance Program or comprehensive Grant Program). Column (6) Enter the portion of total salary expense shown in Column (5) or Column (9), form HUD-52566, allocable to Section 8 Programs. Note: The number of equivalent full-time positions and the amount of salary expenses for all positions designated "M" on form HUD-52566 must be equitably distributed to account lines Ordinary Maintenace and Operation- Labor, Extraordinary Maintenance Work Projects, and Betterments and Additions Work Proiects. HUD-Aided Mana ement Pro ram Equivalent Sala Ex enses Account Line Total Number of positions 1 Full-Time Positions 2 Management 3 Section 23 leased Housing Only 4 Modernization Programs 5 Section 8 Program 6 Administration-Nontechnical Salaries 1 Administration-Technical Salaries 1 Ordinary Maintenance and Operation-Labor 1 Utilities-Labor 1 Other (Specify) (Legal, etc.) 1 Extraordinary Maintenance Work Projects 2 Betterments and Additions Work Projects 2 1 Carty forward to the appropriate line on HUD-52564, the amount of salary expense shown in column (3) on the corresponding line above. Carry forward to the appropriate line on HUD-52564 (Section 23 Leased Housing Budget), the amount of salary expense shown in column (4) on the corresponding line above. 2 The amount of salary expense distributed to Extraordinary Maintenance Work Projects and to Betterments and Addftions Work Projects is to be included in the cost of each individual project to be performed by the HA staff, as shown on form HUD-52567. form HUD-52573 (3/95) Previous Editions are obsolete Page 2 of 4 ref Handbooks 7475.1 _10_ Specify all proposed new positions and all present positions to be abolished in the Requested Budget Year. Cite prior HUD concurrence in proposed staffing • changes or present justification for such changes. Cite prior HUD concurrence in proposed salary increases for Administration Staff or give justification and pertinent comparability information. Cite effective date for current approved wage rate (form HUD-52158) and justify all deviations from these rates. SEE HUD FORM 52566 Travel, Publication, Membership Dues and Fees, Telephone and Telegraph, and Sundry: In addition to "Justification for Travel to Convection and Meetings" shown on form HUD-52571, give an explanation of substantial Requested Budget Year estimated increase over the PUM rate of expenditures for these accounts in the Current Budget Year. Explain basis for allocation of each element of these expenses. SEE HUD FORM 52571 Utilities: Give an explanation of substantial Requested Budget Year estimated increase over the PUM rate for each utility service in the Curent Budget Year. Describe and state estimated cost of each element of "Other Utility Expense." Water 3,360 Electricity 18,660 Gas 25,120 Fuel • Other Utilities 14,605 Garbage Remova 4,070 TOTAL: 65,815 Ordinary Maintenance &Operation-Materials: Give an explanation of substantial Requested Budget Year estimated increase over the PUM rate of expenditures for matters in the Current Budget Year. SUPPLIES & MATERIALS 4,800 TOTAL: 4,800 Ordinary Maintenance 8 Operation-Contract Costs: List each ordinary maintenance and operation service contracted for and give the estimated cost for each. Cite and justify new contract services proposed for the Requested Budget Year. Explain substantial Requested Budget Year increases over the PUM rate of expenditure for Contract Services in the current Budget Year. If LHA has contract for maintenance of elevator cabs, give contract cost per cab. SNOW REMOVAL 2,700 PLUMBING & MISC 4,000 PEST CONTROL 900 MAINTENANCE TRAVEL 780 ELEVATOR SERVICE 2,680 FIRE SECURITY 1,700 LAWN CARE 3,700 CABLE 960 TOTAL: 17,420 form HUD-52573 (3/95) Previous Editions are obsolete Page 3 of 4 ref Handbooks 7475.1 _11_ Insurance: Give an explanation of substantial Requested Budget Year estimated increases in the PUM rate of expenditures for insurance over the Current Budget Year. Cite changes in coverage, premium rates, etc. WORKERS COMP LIABILITY 7,900 BOND TOTAL 7,900 Employee Benefit Contributions: List all Employee Benefit plans participated in. Give justification for all plans to be instituted in the Requested Budget Year for which prior HUD concurrence has not been given FICA-ADA $ 35,520 X 7.65% PENSION & HEALTH UNEMPLOYMENT UNEMPLOYMENT FICA-MAI $ 37,770 X 7.65% PENSION & HEALTH TOTAL: 0 Collection Losses: State the number of tenants accounts receivable to be written off and the number and total amount of all accounts receivable for both present and vacated tenants as of the month in which the estimate was computed Bad Debts 2,500 TOTAL: 2,500 Extraordinary Maintenance, Replacement of Equipment, and Betterments and Additions: Cite prior HUD approval or give justification for each nonroutine work project included in the Requested Budget and for those for future years which make up the estimate on form HUD-52570. Justifying information incorporated on or attached to formHUD-52567 need not be repeated here. SEE HUD FORM 52567 Contracts: List all contracts, other than those listed on page 3 of this form under Ordinary Maintenance ~ Operation (OMO). Cite the name of the contractor, type of contract, cost of contract and contract period. Justification must be provided for all contract services proposed for tha requested Budget Year (RBY). Explain substantial RBY increases over the PUM rate of expenditure for these contracts on the Current Budget Year forth HUD-52573 (3/95) Previous Editions are obsolete Page 4 of 4 ref Handbooks 7475.1 -12- 0 N O M _~ z O Q 0 C ~ O C = ~ C ~ l0 E c ~ O '~ C ~ ~ N U ~ O o. ,~, a m ~ `o O = U ~ A O C m E :: H d v (n a ~ rn •` C fB ~ N a ~ ~I C f0 N C O ~~ 3 m ~ O C N ate., ~ ~ ~ L Z W ~ J LL ~n3o ~ ?~= o U 3 F wO~¢ ~ c UOtn O W ~ Z J m a {i ~ J ~ Q W~f' ? ~ N Z ~ QO w a W } W LL R' °aO a a~~ ~ ° ww ~ F„ w =a> w w E a ~ a N ~ O X ` Z d ? W 2 ° `m W t S O ~ O M W N ~ L LL O W p ~ ~ {{ O o a` `e A - w° a` p m g s ~ E _ b o~_oao ~°• ~D cn 'o o0 0 ogoooo o 0 °o ~ N M M N 0 `c Y § O O ~ O ~ N `n > .. 6 Q a ~ N f`~7 M U y u v1 E ~ ~ ~ _ ~ W ~ ~ ~ ~ N a o rc 0 _ ~ } z d m o ?~ 0 f O M N ~ N ~ N _. h ~ $_ Z m U o v r v ~ 8 .. F Z ~ N K y N ~ . 6 O ° d" c n 6 A E n H Z Q ~ '~ ~ c ` o d ~ a ~ ' a c ° E e 'b € = C a E " w '- E " 2 ac ti LL m o U c d y ~ N ¢ ~ r m w j v g ~ $` ~ U 9 ~ c a ° Z ~ m ~ € E ~ Z c 3 p ~ G! d > ~ ~ w~ = :° ~ Q R y Z v q 3 ~' d ~'' d fn R • m 'm^ ~ y d L C V +~' ~ C ~ ~~ = w dy 13 C C y ,B N d ~ ~ ~. Eo ~ O • w _ ~ r C +~+ L t0 ° c ~ z ~ ~ ~~ ~ a -13 ~ $ - ~~ ~~ e~ .m. n b Y N N O ~_ x ~~ MEMORANDUM January 22, 2009 To: HRA Board Chair and Commissioners From: Kandis Hanson, City Manager Catherine Pausche, Finance Director/Treasurer Re: Westport Properties Management Agreement Cancellation Westport Properties has provided property management services for Indian Knoll Manor, the HRA's 50-unit senior housing facility located at 2020 Commerce Boulevard, since 2003. The HRA Board approved an interim management agreement with Westport to allow Staff more time to evaluate the responses to our RFP. After much consideration, Staff believes there is much to be gained by taking the management of Indian Knoll Manor back in-house. Reasons for this recommendation include: • Ability to share administrative services including splitting a current position 50/50 between the Police Department and Indian Knoll Manor • Ability to allocate an Administrative Services Fee to the project to partially reimburse payroll and expenses for the Executive Director, Finance Department, and other support services to be provided by General Fund employees, • Ability to increase accountability and responsiveness to tenant related issues • Ability to increase participation in and control over the capital planning and management of the building • Ability to increase the level of community involvement, improve the image of the building, and reduce vacancies Staff recommends approval of the attached resolution to reject all proposals for property management services and to terminate the current agreement with Westport Properties. Thank you for your consideration in this matter. Please feel free to let Catherine know if you have any questions at (952)472-0633. -14- ,, • MOUND HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION NO. 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 located 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 of 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. Mark Hanus, Mound HRA Chair Attest: Bonnie Ritter, City Clerk -15- MEMORANDUM January 22, 2009 TO: Housing and Redevelopment Authority Board Members FROM: Kandis M. Hanson, City Manager Catherine Pausche, Finance Director/Treasurer SUBJECT: HRA Insurance Liability Coverage Resolution Not To Waive Statutory Tort Limits The Board of the Housing and Redevelopment Authority of Mound must decide whether or not to waive the statutory tort limits on an annual basis. In the past, the HRA Board has not waived the statutory tort limits. With this resolution, the Council would elect not to waive the statutory tort liability established by Minnesota Statutes 466.04. Such election would be effective until amended by further resolution of the HRA Board, although the League of Minnesota Cities Insurance Trust (LMCIT) requires the resolution to be formally renewed every year. If you have any questions, please contact me at 952-472-0609 or Catherine at 952-472-0633. Attachment -16- • MOUND HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION NO. 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 of 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, THEREFORE BE IT RESOLVED by the Housing and Redevelopment Authority of 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 27t'' day of January, 2009. Mark Hanus, Mound HRA Chair Attest: Bonnie Ritter, City Clerk U _17_ 5341 Maywood Road Mound, MN 55364 (952) 472-3190 MEMORANDUM To: Honorable Mayor and City Council and Mound Housing and Redevelopment Authority From: Sarah Smith, Community Development Director (on behalf of Operation Black Cat Project Team) Date: 1 /23/2009 Re: Operation Black Cat Disaster Emergency Training Exercise City Council and HRA Joint Session Discussion of the Operation Black Cat emergency training project will be held during a joint meeting of the Mound City Council and Housing and Redevelopment Authority (HRA). Background At its January 11, 2009 meeting, the City Council received a presentation from Police Chief Jim Kurtz of the Mound Police Department and the Lake Area Emergency Management Group, regarding a proposed disaster training exercise to be undertaken in the 5500 block of Shoreline Drive which is located in the Auditor's Road District. As the HRA and City Council may recall, the Police Department and training group successfully applied for and 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 goal of the operation is for the lake area group to exercise incident command, personnel and vehicle staging, public information, inter-discipline radio operations, crowd control, and specialty support services such as fire heavy-structure-collapse-rescue and police bomb detection. The proposed date for the training exercise is Saturday, May 2, 2009. The planning group has identified (4) properties for the training exercise including the buildings located at 5533 / 5545 / 5555 / 5567 Shoreline Drive. As the City Council and HRA are aware, this area has been slated for redevelopment by the Housing and Redevelopment Authority (HRA) and Mound Harbor Renaissance Development (MHRD), .the HRA's developer. The planning group has determined that the subject area is large enough to manage the full scale operation and can safely accommodate partial structural collapsed, control bums, and prop staging. Further, the Transit District parking ramp located north of the training area provides an excellent opportunity for the public and the media organizations to observe the exercise. Subject Area Details HRA-Owned Properties. The project involves use, building remediation (asbestos/regulated waste) and subsequent demolition of the HRA-owned properties including the former Glass Plus, Johnson Estate and House of Moy buildings. -18- .. t Becket Propefir. The property at 5567 Shoreline Drive, which is owned by Roger Becket, is • also proposed to be use as part of the training session and will also include asbestos/regulated waste removal and demolition activities. As the HRA and Council may recall, the HRA has an Option Agreement for the Becket property which has a termination date of March 15, 2009. Members are advised that the current Option Agreement includes provisions for the agreement to be amended and extended. Subject to review and approval by the HRA, Staff has proposed that the City/HRA would undertake and pay for the demolition costs on the Becket property and would place a lien on the property equal to the demolition costs, including any environmental work done as part of the demolition. If the HRA exercises its option to acquire the property, the lien would be removed from the property, and we would collect the cost of the environmental work (as stipulated in the Option Agreement) out of the proceeds from the sale. If the HRA did not exercise the option, the lien would remain on the property until the owner sold or refinanced the property, and it would be paid to the City/HRA at that time. Members are advised that this proposal was discussed with the ownervia telephone who was acceptable to the terms. For review and consideration, a proposed amendment(s) to the Option Agreement for the Becket property has been prepared by the City Attorney and has been included in the HRA agenda packet. Members are advised that the proposed amendment is .also being forwarded to the property owner for review. Staff will further comment on this matter at the meeting. Additionally, it is important to mention that the owner also expressed his continued interest in a future sale of the subject property. Project Financing • Total project costs are estimated between $85,000 - $100,000 for building demolition • and asbestos/regulated waste removal activities. A preliminary breakdown of the estimated demolition and environmental remediation costs known. to date is provided below: Demolition - (4) buildings $37K - $58K Asbestos /regulated waste removal - HRA buildings $37K Asbestos /regulated waste -Becket building TBD At present, Staff does not have an environmental estimate for the Becket property. Members are advised that a building assessment survey will need to be prepared for the Becket property to determine the asbestos/regulated waste costs. Similar to the former Johnson and House of Moy agreements, the cost of this report would be paid by the City / HI~A. Members may recall that asbestos and regulated waste removal estimated costs were withheld from the purchase price for the Johnson property ($21,130) and House of Moy ($25,000) properties and placed in escrow accounts. If the actual costs for these items do not exceed these estimates, the balance will be paid to the property owners. Members are advised that the estimated building remediation costs are $11,750 for the former House of Moy building and $17,975 for the former Johnson building. No environmental escrows were collected as part of the HRA's purchase of the former Glass Plus building. ., .~ • Page 2 -19- • Finance Director Catherine Pausche has indicated that costs for the training exercise could be financed through TIF District 1-3. Discussion • Members of the Operation Black Cat project team will be present at the 1127 meeting to further discuss the proposed training exercise and related matters. • The building remediation activities must occur prior to the training exercise and are anticipated to take place in March with demolition scheduled to take place as soon as possible following the May 2"~ event. • Members are advised that in the event the Becket building is not part of the training exercise, it is possible the disaster training would need to be limited to the former Glass Plus building only. • The HRA will need to provide a right of entry/hold harmless agreement to the City for the training exercise. It is anticipated that an agreement, to be prepared by the City Attorney, will be included on an upcoming HRA meeting for review /action Action Items for City Council and HIZA HRA A. Discussion/action adopting resolution approving addendum to Option Agreement for property at 5567 Shoreline Drive (HIZA Action Item). Members are advised that a draft resolution has been included in the HRA agenda packet for review /action and also includes a provision to authorize Staff to execute an extension for the current Option Agreement which expires on March 15, 2009. B. Discussion/action on financing plan for the Operation Black Cat exercise with funding to be provided by TIF 1-3 (HI2A Action Item) Citv Council A. 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) • Page 3 _20_ ADDENDUM TO OPTION AGREEMENT THIS ADDENDUM TO OPTION AGREEMENT ("Addendum") is made and entered into effective as of the _ day of , 2009 by and between Roger Beckel and Elizabeth Beckel, husband and wife ("Sellers") and The Housing and Redevelopment Authority in and for the City of Mound, Minnesota, a Minnesota public body corporate and politic, ("HRA") RECITALS A. The parties did on or about Mazch 13, 2008 enter into that 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. B. 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. • C. 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. D. It is 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. AGREEMENT In consideration of the mutual covenants and promises set forth herein and in the Agreement, the receipt and sufficiency of which is hereby acknowledged, Sellers and HRA agree as follows: 1. Right of Entry and Demolition. Subject to the provisions of this Addendum, Seller hereby grants to the HRA, its agents and employees the right to enter onto the Property during the term of the Agreement for the purpose of: (i) conducting all testing and inspections as are necessary in order to prepaze for demolition of structures located on the Property; (ii) conducting a disaster training exercise including multiple agencies; (iii) doing the demolition work (including all • environmental remediation necessary in connection with the demolition) including 346024WL JBD MU195-25 _2~_ any utility disconnection, grading, filling or other site work necessarily connected with such demolition activities. The parties anticipate that the inspection and testing will commence immediately upon the execution of this Addendum by the parties, and that the actual environmentaUdemolition work will commence as soon as possible following March 1, 2009. As part of their responsibility, Sellers agree that not later than March 1, 2009 all materials and equipment and items of personal property will be removed from the building, and the building will be in a condition ready for demolition. 2. HRA Representations. In consideration of the Seller's grants to the HRA under this Addendum, the HRA agrees: (i) to use the Property only for the purposes described herein; (ii) to do no unnecessary damage to the land; (iii) to promptly pay all costs related to the activities described in paragraph 1 above; (iii) to hold Sellers harmless and to indemnify them from any and all claims, damages, or judgments from others based on HRA's or City's activities hereunder, except as to damages, claims, or judgments from others caused by the negligence or intentional conduct of Seller. 3. Allocation of Costs. Reimbursement to the HRA for costs it incurs pursuant to pazagraph 2(iii) will be as follows: A. If HRA exercises option. (a) The Environmental Costs incurred by the HRA will be reimbursed by Sellers as provided in the Agreement. (b) Other demolition costs, including without limitation, fees for permits, utility disconnection, fill and grading will be the responsibility of the HRA and not subject to reimbursement. B. If HRA does not exercise option. (a) The Environmental Costs incurred by the HRA will be reimbursed by Seller. (b) Other demolition costs, including without limitation, fees for permits, utility disconnection, fill and grading will be reimbursed by Seller. Reimbursement by Seller under paragraphs 3B(a) and (b) will be made not later than 30 days following the eazlier of: (i) the date the HRA notifies the Seller that it will not be exercising its option; or (ii) the date that the option expires. As security for Sellers obligation to reimburse the HRA under this paragraph 3B, the HRA may place a lien on the Property in an amount equal to the sum of items (i) and (ii). The lien will be recorded among the land records, will not bear interest, and will be due and payable on the earlier of: (i) refinancing of the Property by Seller; (ii) sale of the Property by Seller; or (iii) five years 34602442 JBD MU195-25 2 -22- . _... ~ from the date of the lien. If Seller has not reimbursed the 1-IRA by such date, the IRA may • foreclose the lien. 4. Parties to Cooperate. Seller acknowledges that HRA is placing substantial reliance on Seller's obligations to make the building ready for demolition not later than March 1, 2009. Consequently, subject to HRA's obligations to indemnify and hold Sellers harmless under paragraph 2 of this Addendum, Seller authorizes the HRA to undertake to obtain all licenses, permits and approvals as may be necessary to carry out the demolition activities. Seller agrees to sign all applications for which an owner's signature is required, and to cooperate, in a timely manner with all requests from the HRA for information needed in connection with such applications. IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first above written. SELLERS: BUYER: Housing and Redevelopment Authority in and for the City of Mound, Minnesota By Roger Beckel Date Kandis M. Hanson • Its Executive Director Elizabeth Beckel C 346024 JBD MU195-25 Date Date -23- DRAFT MOUND HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION NO.09- 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. -24- ...,.. 1. • BE IT FURTHER RESOLVED by the Housing and Redevelopment Authority in and for the City of Mound to hereby authorize the Chair and 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 Chairperson Mark Hanus Attest: Kandis Hanson, Executive Director C~ r1 U -25-