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5.11. SR 04-12-2004MEMORANDUM Item S. II. TO: FROM: DATE: SUBJECT: Mayor and Council Pat Klaers, City~.(~{r~Strator April 12, 2004 Update on Status of Bailey Property After having a discussion xvith Councilmember Dietz, the city is planning on assuming ownership of the Bailey house sometime in mid to late April. According to John everything is out of the house and there are only a fexv items left in the garage. It has been requested that the city take o~vnership of the property and allo~v the Bailey family to continue to have control of the garage until around mid year 2004 in order to completely remove their possessions from the site. This request does not pose any problems for the cit7. In fact, getting early access to the property xvill alloxv us to do some of the necessary improvements in order to lease out the property for transitional housing. The cit3, attorney has prepared a deed (xvhich xvill transfer the property to the city) and a storage lease agreement. This information has been sent to the attorney for the Bailey family. Once accepted the city xvill sign and record the documents and take oxvnership of the property. The city is scheduled to begin insuring the property as of April 18, 2004. The city has a number of xvork items that need to be accomplished prior to the house being leased out to Love Elk River. Attached for your review is the November 2003 memo on the xvork that is necessary at this property. Street Superintendent Phil Hals will be in charge of ensuring that the items listed in this memo get accomplished. Work xvill begin on these items h~ the very near future. This memo also lists a number of items that need to be accomplished by the future renters of the property. It is veU' reasonable to think that the house will be available for rent to Love Elk River by July 1, 2004. No action is necessau, xvith this "project update" agenda item. 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 b7 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 TOTAL: $1,250.00 750.00 2,250.00 I .750.00 $6,000.00 Ciw CouncL! Mim~tes Page 3 November ~.7, 2003 stated that the fee schedule w~ be brought to Council for a pubJac heanng on December 15, 2003. Councilmember Dietz requested that Fire Chief Bruce West provide the Council ~vith an update on who has f~reworks permits and the work/cost involved ~vith en£orcement of the requirements. Update on the Bailey House Ci~ Administrator Pat IClaers &scussed the repairs (apprbXWnately $6,000) that need to be made to the B,qiley House prior ~o leasing it out to Love Elk River ~or a transitional housing program. He sta~ed that some of the clean up, pmnting and planting work could be completed by Love Elk River. N[r. IClaers provided a per month breakdown of the expenses to sho~v how the suggested rent amount was determined. The house will not be available unU/around spring, 2004. MOVED BY COUNCILMEMBER KUESTER AND SECONDED BY COUNCILMEMBER TVEITE TO APPROVE A LEASE FOR THE BAILEY HOUSE IN THE AMOUNT OF $425 PER MONTH FOR THE FIRST TWELVE MONTHS AND $450 PER MONTH FOR THE SECOND TWELVE MONTHS IF THE LEASE IS EXTENDED. THE MOTION CARRIED 5-0. 4.S. Consider Payment to the School District for the Little Theatre City Administrator Pat ICAaers discussed the past payment b/story by the ci~7 to the school district to help refurbish the Little Theatre. MOVED BY COUNCILMEMBER MOTIN A_ND SECONDED BY COUNCILMEMBER KUESTER TO USE NSP RESERVE FUNDS TO FINANCE THE 2003 PAYMENT OF $112,600 TO THE SCHOOL DISTRICT FOR THE LITTLE THEATRE. THE MOTION CARRIED 5-0. 4.9. Consider Annual Increase in City Contribution to Employee Insurance City, Administrator Pat I<daers stated that the city has budgeted a $10.00 per month per employee increase o£ the city's conmbudon to the 2004 Employee Insurance Program. He stated that in the 2004 police un/on officers' contract, the u~on employees received a $~5.00 per month increase. He stated that the police union employees have a different insurance policy than the non-un/on city, employees. Councilmember Dietz stated that in order to be fair to all employees the same conmbution amount should be approved for both union and non-union employees. MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILMEMBER DIETZ TO APPROVE A $15.00 PER MONTH INCREASE IN THE CITY CONTRIBUTION TO THE 2004 EMPLOYEE INSURANCE PROGRAM FOR NON-UNION EMPLOYEES. THE MOTION CARRIED 5-0. Open Mike No one appeared for Open