4.7. SR 11-17-2003City
TO:
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor and City Council
Pat Klaers, City Administrator
November 17, 2003
Update on the Bailey House
Item 4.7.
On July21, 2003 the City Council approved the leasing of the Bailey house to Love Elk
River for transitional housing. At this time it appears that the city will not take over
ownership of this house in order to lease it to Love Elk River until spring 2004. In order to
facilitate Love Elk River's planning for the future, it is appropriate for the cityto determine
its lease amount for this property.
It is not the intent of the city to make a profit off of the leasing arrangements for transitional
housing. The lease amount for the Nord property, which the city owns and leases to Love
Elk River (the propertyis just north of the golf course), is $300 per month. It is suggested
that the lease amount for the Bailey house be $425 per month. The per month breakdown is
as follows:
· $50-insurance
· $150-taxes
· $100-initial repair work (five year payback)
· $100-major appliance replacement and floor covering replacement
· $25-this allows $300 per year for miscellaneous expenses
Please see the attached memo from Phil Hals regarding some of the above noted expenses.
There is always some uncertainty in estimating furore repair and maintenance expenses. The
finance director has provided the estimate for taxes and insurance. As we are not trying to
make a profit off of this leasing arrangement, I think that $425, and at the most $450 per
month should be sufficient to meet our needs.
Recommendation
It is recommended that the City Council establish the lease amount for the Bailey house for
the first twelve months at $425 per month and for the second twelve months at $450 per
month; with the rental amount beyond the first twenty-four months to be determined at a
future date.
S:\Council\Pat\2003\BaileyHouseLease.doc
City Council N~hmtes
July 21, 2003
Page 3
The consensus of the Council was to continue this matter to allow further research until
August 18, 2003.
4.5. Consider Landfill Host Fees
Building and Zoning Administrator Steve Rohlf stated that the city collects a surcharge of
$1.00 for each cubic yard of solid ~vaste brought to the landfill. He stated that 0-5 percent of
this surcharge goes into a special fund that can only be used for landfill abatement. Nix.
Rohlf stated that the city 5vould like to replace the surcharge ~vith a host fee at the same
$1.00 per cubic yard and that this would allo~v all fees collected to be used at the city's
discretion.
Council_member Modn stated that he disagrees ~vith the city attorney's interpretation of the
state statute and is concerned the city will have to repay 25 percent of the fees back to
iandfdl abatement.
COUNCILMEMBER TVEITE MOVED THAT THE CITY ENTER INTO A
HOST COMMUNITY AGREEMENT WITH ELK RIVER LANDFILL, INC.
CONTINGENT UPON THE LANDFILL NOT REQUESTING ANY
SUSTENTATIVE CHANGES TO THE DRAFT AGREEMENT.
COUNCILMEMBER KUESTER SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
4.6. Transitional Housing Proposal
Mayor I~dinzing explained that the city o~vns a house it could consider leasing to Love Elk
River for LransidonaI housing. Mayor I-.2nzing stated that when cities have an opportunity
they should partner ~vith local organizations on projects that help the less fortunate.
Councilmember Mot_in stated that he is concerned with the city ta?dng on social service
responsibilities.
Counciixnember Tveite indicated this is a unique situation and that the city is not really in the
housing market.
Councilmember Kuester stated that she is favorable to leasing out the house as long as it is
short term.
MAYOR KLINZING MOVED TO LEASE THE BAILEY HOUSE TO HARVEST
EVANGELISM DBA LOVE ELK RIVER FOR ONE YEAR TO BE USED FOR
TRANSITIONAL HOUSING WITH A SIMILAR LEASE AGREEMENT TO
THE HOUSE NORTH OF THE GOLF COURSE CURRENLTY BEING
LEASED BY LOVE ELK RIVER WITH THE RENT AMOUNT TO BE SET BY
THE CITY. COUNCILMEMBER TVEITE SECONDED THE MOTION. THE
MOTION CARRIED 4-1. Councilmember Dietz opposed.
5. Open Mike
No one appeared for Open Mike.
TO:
FROM:
DATE:
SUBJECT:
MEMORANDUM
Pat Klaers
Phil Hals
November 14, 2003
Update on the Bailey House
Terry Zajac and I made a recent inspection tour of the Bailey House and would like to recommend the
following:
· New floor coverings on both levels
· Replace basement shower stall
· Replace damaged sheet rock and paneling
· Add eave troughs to south side of house
· Remove overgrown shrubbery
· Remove screen building on southeast lot corner
The first 3 items would be contracted out and City staff would do the last 3 items in the spring of
2004.
General clean-up, painting and foundation plantings could be done by the renter with city supervision.
Cost estimates for the contract work are:
Remove and replace the shower
Remove and replace damaged sheetrock & paneling
Remove and replace floor covering, main floor
Lower level
$1,250.00
750.00
2,250.00
1,750.00
TOTAL: $6,000.00
MEMO: Pat Klaers
11-14-03
Page #2
I would suggest the following per month rental costs:
Floor covering replacement (7 year life expectancy) $
Major appliances replacement fund
(including kitchen range, refrigerator, furnace and plumbing)
Renters to be responsible for window air conditioning Units.
50.00/per month
50.00/per month
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