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Joint Powers Cities <br />Suburban AllianceAVest Hennepin Human Ser\'ices Planning Board <br />December 23.1996 <br />Ronald Moorsc <br />City Administinfoi <br />City of Orono <br />P.O. Box 66 <br />Crystal Bay, MN 55323 <br />'d ^ :L9S3 <br />Dear Mr. Moorse, <br />The dissolution of Suburban Alliance proceeds on schedule. The agency will <br />cease operations on January 31, 1997. We have received 19 of 21 resolutions expressing <br />the intent to dissolve from the member joint powers cities (we are currently missing <br />resolutions from Medina and Mound). Discussions are underway about the future of <br />human services planning and coordination in western Hennepin County. <br />Many difficult issues have been resolved in the last months. The most significant <br />is a settlement with the landlord, achieved with the assistance of the Suburban Alliance <br />Board. The landlord released Suburban Alliance from the lease in consideration of a <br />payment of $38,000. which represents the investment in leasehold improvements made to <br />the property for Suburban Alliance. This settlement is good news, given that we <br />anticipated a much higher obligation for the lease. <br />Because of the resolution of the lease question and several other issues, we are <br />now in a position to give you the amount of your city's obligation to close down the <br />agency and pay the existing debts, fhe final amount is $110.000. Here is a breakdown <br />of this number: <br />1995 Debts <br />Emergency Service Providers $37,328 <br />FEMA 4.734 <br />Tw in Cities Voice Mail 7.545 <br />Jobs Now Coalition 700 <br />Subtotal 550,307 <br />Final Lease Agreement $38,000 <br />1996 Operating Delicit 6.500 <br />Subtotal 594,807 <br />Contingency 15.193 <br />TOTAL 5110,000 <br />The attached spreadsheet shows the obligation of each of ihc joint pow ers cities. Also <br />included is an invoice for the amount owed by your city.