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HRA 02/04/2010 - 6250February 4, 2010 HRA Meeting Regular Meeting Agenda 7.00 a.m. City Hall, Council Chambers Call to order Roll call Action Items pr Approval of expenditures j2!' Approval of January 7, 2010, Meeting Minutes Approval of Final 2010 Budget CR Loan Program Administration Contract Extension S Informs tonal Items (D Home Improvement Demonstration Program Update � Housing Loan Program Update Adjournment Aj�'*!� to N- �'O""' Nolp"114 -- - H: \My Documents\HRA\2010 AGENDASTebruary 4 -2010 Agenda Outline (2).docH:\My DOCUmentMRA\2010 AGENDASTebruary 4 -2010 Agenda Outline (2).doc COMMUNITY DEVELOPMENT DEPARTMENT HOUSING AND REDEVELOPMENT AUTHORITY Memorandum DATE: January 28, 2010 TO: William W. Bums, Executive Director of HRA FROM: Rick Pribyl, Finance Director Paul Bolin, Assistant Director of HRA SUBJECT: Approval of 2010 Budget Attached you will find the final 2010 budget document and the cash balances as of 11/30/09. This document is now ready for your approval. We have made a couple of small changes to the budget since your January meeting. We increased the dollar amount associated with the housing demonstration project in the Housing Loan Programs Fund to $130,000. We also "tweeked" the numbers in the Center City TIF Fund, Expenditures, to more closely match the close out of that fund after the pay off of the bonds and the payment to the County related to the return of the excess TIF funds. As always, should you have any additional questions related to this topic, Paul and I will be available to answers any questions you may have. With these minor changes, staff is recommending to the Housing Redevelopment Authority Commissioners to make a motion to approve the 2010 Fridley Housing Redevelopment Authority Budget for 2010. J:\Acctng \HRA\HRA 2009 Budget Memo 12 02 09.doc CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION JANUARY 7, 2010 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:30 p.m. ROLL CALL: MEMBERS PRESENT: William Holm Pat Gabel Larry Commers Stephen Eggert John Meyer NONMEMBERS PRESENT: Paul Bolin, HRA Assistant Executive Director Richard Pribyl, Finance Director William Burns, City Manager Chairperson Commers welcomed new member Commissioner Eggert to the Housing and Redevelopment Authority. ACTION ITEMS: 1. Approval of Expenditures MOTION by Commissioner Gabel to approve the expenditures as presented. Seconded by Commissioner Holm. Commissioner Holm noted that there are five housing improvement loans which is a good sign. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of December 3, 2009, Meeting Minutes MOTION by Commissioner Holm to approve the minutes as presented. Seconded by Commissioner Gabel. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. Approval of Preliminary 2010 Budget MOTION by Commissioner Gabel to remove the Preliminary 2010 Budget from the table. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE ITEM REMOVED FROM THE TABLE Paul Bolin, HRA Assistant Executive Director, provided highlights of the HRA 2009 financial activity and an overview of the proposed 2010 budget. The packet included Cash Balances as of 11/30/09, General Fund, Housing Fund and TIF Districts 2009 Activity through 11/30/09, the Final 2009 Budget and the Proposed 2010 Budget. Mr. Bolin said that the HRA Budget is divided into three categories; a General Fund (Administrative and Operating Expenses), a Special Revenue Fund (Housing Loan Program) and a Capital Outlay Funds (Tax Increment Districts, Redevelopment Projects and Housing Replacement Program). Mr. Bolin reviewed the 2009 Activity Highlights which included the decertification of the Center City Tax Increment District, the property acquisitions in Gateway Northeast, the demolition of Gateway Northeast properties and the legal work necessary for Northstar. Mr. Bolin said that revenues are projected at a total of $2.5M for 2010, which is an $881,777 decrease from 2009. This is primarily driven by Center City (TIF # 1) becoming inactive at the end of 2009. The total expenses are projected at $5.4 M for 2010, which is a $726,000 increase from 2009. This increase is caused by the redemption of the 2004B bonds in the amount of $1,175,000. Mr. Bolin said that the total projected capital outlay expenditures for 2010 Funds include: General Fund $800,000 Housing Loan Programs $120,000 Lake Pointe (TIF #6) $667,800 57th (TIF #16) $24,465 TIF #19 (TIF #19) $119,600 Mr. Bolin said that the total debt service payments in 2010 involve the redemption of the 2004B bonds and the return to the County of all excess cash balances at that time from TIF District #1. The projected scheduled debt payment is $580,062 and the projected payoff of 2004B 2/1/10 is $1,175,000. Commissioner Gabel asked about the Miscellaneous Revenue and what kind of interest rate is being earned and what the investment is in. Rick Pribyl, Finance Director, said that the City is restricted in what can be invested in based on State Statute. Interest rates are around 1 -1 1/2%. Chairperson Commers asked about the cash balances and if the monies the city is using for bond redemptions will be a reduction from the cash balance. Mr. Pribyl answered yes, once the bonds have been turned back the balance will be $7.5M. Chairperson Commers asked what the amount is that will be returned to the county. Mr. Pribyl said he would not have an exact number until February. Chairperson Commers asked about the allocation between HRA and the City with respect to the staff time etc. and if it has changed for 2010. Mr. Pribyl answered no, the rate remained the same. Chairperson Commers asked what the Capital Outlay of $800,000 was for. Mr. Bolin said that was to purchase additional properties in the Gateway Northeast Area. Commissioner Gabel said she had heard the City Council talk about going to the Capitol to attempt to get legislation in terms of scattered site housing tax increment districts. Mr. Bolin said that is correct, on Monday night there was talk with the legislative delegation. Scott Hickok mentioned plans to be down there again this year for special legislation to go out and purchase foreclosed homes to set up scattered home tax increment districts. Chairperson Commers asked how much revenue would be returned to the city after the bonds are called. Mr. Pribyl said between $400- 450,000. William Burns, City Manager, asked where the demonstration project would be budgeted in 2010. Mr. Bolin said it would be out of the Housing Fund as there are excess funds in that program. Commissioner Gabel questioned the mowing charges. Mr. Bolin said that the charges will go down a little in 2010 because staff was mowing the Northstar parking lot areas. He agreed that the HRA does have a lot of property to mow. MOTION by Commissioner Gabel to approve the Preliminary 2010 Budget. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED. UNANIMOUSLY INFORMATIONAL ITEMS: 1. Home Improvement Demonstration Program Paul Bolin, HRA Assistant Executive Director, said that last month HRA authorized staff to move forward with finding a home. Staff continues to look for a structurally sound rambler that is vacant, in a visible location, and priced correctly. Some problems that arose are finding homes that don't have pending offers, many homes are currently being rented or otherwise inhabited and not many available homes are in visible locations. Staff remains optimistic that the right home will be found soon. Chairperson Commers asked how many homes were on the foreclosure report. William Burns, City Manager, thought there were about 120 -130 houses per year in foreclosure. The County said one of the biggest problems is the - $8,000 first time buyer incentive and people are paying more than what the home is worth, which is competing with the Housing Revitalization Programs. Mr. Bolin said that a lot of the homes staff has tried to look at have a number of offers pending so it takes months to get answers back on these offers. Chairperson Commers asked if there were any updates with the litigation regarding East Bethel. Mr. Bolin said that they are still waiting for the day in court and that there is not any update since November. Chairperson Commers asked if they County HRA made any contributions to Fridley. Dr. Burns said that County used federal money to purchase a house in Fridley under the Neighborhood Revitalization Program. Mr. Bolin said that Anoka County also looked at another property earlier this week. The County is running two programs. In one of the programs homes are purchased and demolished and the lot will eventually be sold. The other program is a housing rehab program where homes are purchased, brought to minimum code level and put back on the market. Commissioner Eggert said that he has been involved in buying foreclosed homes and recalled even after the purchase agreement it took the bank several months to close. He thought timelines for this project, to bring to market in May, were aggressive. He asked staff to share the schedule and drop dead dates for the project. Mr. Bolin said that staff hoped to have the property under control in February, find a re- modeler for the project, get the remodeling underway, look for broker realtor to staff open houses and sell the property. Staff is ready to aggressively act on this project and would like to have this complete sometime in May. Commissioner Eggert asked if brokers advise it is feasible to close that quickly on these types of homes. Mr. Bolin said that staff purposely stays away from homes with several offers and HRA pays cash which makes the transaction go faster. 2. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said that the remodeling advisor visits are picking up again. In 2006 there were 33 visits, 26 in 2007, 16 in 2008 and in 2009 there were a total of 18. Total HRA Loans were 22 in 2006, 17 in 2007, and 18 in 2008 and 2009. Mr. Bolin said that the changes HRA made this past year in the program definitely made a difference to increase the number of loans. Staff has been looking to see what can be done to assist people that have fallen behind. HRA will likely never recover two of the six loans. The homes were foreclosed on but the files were kept alive incase something comes in the future on those homes. Of the last four, three of the people went through forbearance agreements and we are getting closer to contacting the last homeowner. Commissioner Gabel asked what kind of agreements are being made. Mr. Bolin said that all the circumstances are different but staff is mostly working with the terms. The debt is not forgiven but the terms may be extended or extra payments allowed to get caught up etc. Commissioner Gabel asked if the interest rates were compatible. Mr. Bolin said that Fridley's rates are 1 ' /4% below other rates, around 5 %, which is competitive with banks and credit unions for home equity homes. Commissioner Meyer asked what types of remodeling projects were happening; it looked like replacement of windows and doors was popular. He asked what types were being installed. Mr. Bolin said that homeowners were looking for the tax credit on certain types of windows. The types of improvements that are being seen are necessity items and those that improve home efficiency. NONAGENDA UPDATE: Northstar Rail Chairperson Commers asked if the ridership in the rail has increased with the recent cold weather. Paul Bolin, HRA Assistant Executive Director, said ridership did go down a bit but after the holidays. The Police Chief has been riding in from Big Lake every day and reported there has not been any crime in the lots or in the tunnel. Chairperson Commers asked if there was any way to measure ridership in and out of Fridley. Mr. Bolin said that the only way to measure would be to do a manual count. Dr. Burns has had conversations with Medtronic and Onan and Medtronic is interested in a shuttle. William Burns, City Manager, said that Medtronic has a strong interest on it but did not get a very good return on the survey. Medtronic will have a meeting with Metro Transit to discuss the prospect of a shuttle. Metro Transit did revise their bus schedules to make accommodations for people taking the shuttle. Gateway Northeast Paul Bolin, HRA Assistant Executive Director, said that the demolitions have occurred and the contractor will wait until spring to complete the project. The contractor wanted to complete more this winter but now there is too much snow. City engineering staff has been very helpful, inspecting the sewer and water lines etc. and also helped with the specs to go out for bids. Chairperson Commers asked about the expected timing for the project and if the project was in line for completion this spring. Mr. Bolin said that they wanted everything done by the beginning of December but with the snow, they now have until 5115 to get the work done. Commissioner Eggert asked about the large pile of black dirt on site. Mr. Bolin said that is part of the top soil that will go down on the site. This is an interesting process and there is never a wasted trip for the trucks. The process may be taking longer than we had hoped but there are no recyclable pieces making it to the landfill. Fridley Medical Clinic Paul Bolin, HRA Assistant Executive Director, said that the construction is ready to go. Chairperson Commers asked where we are on the Columbia Arena resolution that is currently active. Mr. Bolin said that item was tabled and Attorney Casserly stated that no action is required at this time. Fence Paul Bolin, HRA Assistant Executive Director, said that another accident happened with the fence; a person was at a red light and was rear ended. The car insurance company will pay to fix the fence. Cub Foods Paul Bolin, HRA Assistant Executive Director, said that Triland and Cub were in last week going through applications and site plans. This item will go to the Planning Commission the last week of January. Commissioner Eggert said that he has some experience in working with the phasing of projects, and in phasing you have to be concerned with what condition you are leaving the land and when the work will be done. He was concerned if buildings are not built with the remodel what the outbuildings would look like in the interim. Mr. Bolin said that they are trying to reuse most of the east wall of the current Cub Foods building and the entire south wall. A new liquor store would be built on the east side, once that is moved they would start building Cub Foods in the existing Gander Mountain. With all this in consideration, they are still showing the west half of the building as it exists. So there are concerns about the phasing that the Planning Department will have to work with Cub Foods on. Dr. Burns asked if these issues would be addressed at the public hearing scheduled for February 8`" Mr. Bolin answered yes, unless the petitioner withdraws their request. Fridley Message Center Paul Bolin, HRA Assistant Executive Director, said that this has been installed next door and the City is the keeper of the computer that can change the messages. This is a nice addition to the city. Gateway Northeast Paul Bolin, HRA Assistant Executive Director, said that yesterday Mr. Kim, owner of Tae Kwan Do, contacted Dan Wilson to see if HRA is still interested in purchasing his property. Almost a year ago staff was instructed not to spend any more time on this property as staff had made two offers to Mr. Kim in the past with no reply back. Staff has told Mr. Wilson to respond to Mr. Kim on our behalf and explain that the HRA has asked staff not to spend any more time on this. If Mr. Kim is serious to discuss selling his property, he should draft letter to HRA with his willingness to work with HRA and bring forward some numbers for discussion sake. Chairperson Commers asked staff to check with the sources in Blaine to see where Mr. Kim is on the purchase of the Blaine building. Commissioner Gabel said that she still felt very strongly for staff not to spend any more time on this. If Mr. Kim has something to say he can put it in writing; the land is not worth what it was two to three years ago. Commissioner Eggert agreed that property values have dropped because there is no demand. ADJOURNMENT: MOTION by Commissioner Gabel to adjourn. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:45 P.M. Respectfully Submitted, Krista Monsrud, Recording Secretary COMMUNITY DEVELOPMENT DEPARTMENT HOUSING AND REDEVELOPMENT AUTHORITY Memorandum DATE: January 28, 2010 TO: William W. Bums, Executive Director of HRA FROM: Rick Pribyl, Finance Director 94 Paul Bolin, Assistant Director of HRA v SUBJECT: Approval of 2010 Budget Attached you will find the final 2010 budget document and the cash balances as of 11/30/09. This document is now ready for your approval. We have made a couple of small changes to the budget since your January meeting. We increased the dollar amount associated with the housing demonstration project in the Housing Loan Programs Fund to $130,000. We also °tweeked° the numbers in the Center City TIF Fund, Expenditures, to more closely match the close out of that fund after the pay off of the bonds and the payment to the County related to the return of the excess TIF funds. As always, should you have any additional questions related to this topic, Paul and I will be available to answers any questions you may have. With these minor changes, staff is recommending to the Housing Redevelopment Authority Commissioners to make a motion to approve the 2010 Fridley Housing Redevelopment Authority Budget for 2010. JAAcctng�I IRA*HRA 2009 Budget Memo 12 02 09-doe City of Fridley HRA 2010 Final Budget Packet 2009 Cash Balances .....................Page (1 -2) 2010 Budget General Fund ....................Page (3 -4) Housing Program..... .........Page (5 -6) Tax Increment Districts .... Page (7 -13) City of Fridley HRA 2009 Cash Balances As of 11/30/09 City of Fridley HRA Cash Balances as of 11/30/09 Cash Balances Fund Description Balance 100 General Fund 3,147,691 - - - - -- - -- - - -- 265 Housing Loan Program 3,089,689 All Districts are now�decertiified 450 Center City 3,265,382 451 Moore Lake pbh 9 t d to Bond 452 452 North Area 1,802 Repayment 455 Lake Pointe 55,005 456 Winfield 156,008 458 Onan 586,205 Poolable 462 University 33,325 463 McGlynn 20,289 464 Satellite 31,299 Special Legislation 467 57th Ave 2,916 468 Gateway East 24,874 470 Gateway West (2,332) 472 TIF #19 7,358 501 Housing Replacement 290,269 Total 10,709,781 2 City of Fridley HRA 2010 Budget General Fund City of Fridley HRA Budget Fiscal Year 2009 2009 Activity YTD as a % of Account Description through 11130109 FY 2009 Budget Budget FY 2010 Budget 100 - General Fund Revenues City Revenues 100 - 0000 -311 -1000 Tax Levy 241,014.00 499,757.00 48% 497,976.00 100 40000311 -2000 Tax Levy - Deanquent Years 4107 - WA - 100-0)D0- 3341000 Residual MV Homestead Credit 10,822.61 N/A 47,5m..00 190,000 25% 251,836.61 499,757.00 50% 497,976.00 Other Miscellaneous Revenue - N/A - 100 - 0000 - 362 -1000 Interest on Investment Earnings 6,685.18 135,000.00 50/0 47,000.00 100 - 0000 -362 -1500 Interest on Mortgages (Agro49 4,097.27 4,450.00 92% 4,450.00 100 - 0000 - 362 -2000 Rent and Royalties (Frauenshuh - parking lot rental)- Select Products 10,350.00 9,600.00 108% 14,000.00 100 -00DO- 362 -5100 Sale of Miscellaneous Property (Medbonic Land Sale Paymenq - 72,0DO.O 0% 70,0DO.00_ 5,100.00 103% 21,132.45 _ 221,050.00 10% 135,450.00 Total Revenues GeneralFuntl. "> 272,969.06 ':• 720,807.00 •;:- 38"10 ^? 893.428 DO i Expenses Salaries and Wages 10043000430-4101 Full Tim Employee Salary 63 ,114.12 84,000.00 75% 86,673.60 100 4)000. 430 4107 Temporary Employee Salary - - W A - O- 4 100.0030 -4107 stration Charges (Allocation) Administration 47,5m..00 190,000 25% 193,800.00 100 40000 430 -4112 Employee Leave 12,765.96 - N/A - 123,380.08 274,000.00 45% 280,473.60 Beneftts 100 40000- 430 -4120 Medicare (1.45 %of Salary) 1,184.13 1,200.00 99% 1,300.00 100 - 00004304122 Social Security (6.2% of Salary) 5,083.01 5200.00 97% 5,400.00 100 -)O00- 430.4125 Wells Fargo Contribution (6.0% of Salary) 5,271.49 5,100.00 103% 5,200.00 100-0000 - 430 -4131 Health Insurance - 13,400.00 0% 13,400.00 100 40000430 -4132 Dental Insurance 243.84 277.00 88% 275.00 100 40000 430 -4133 Life Insurance 46.75 105.00 45% 51.00 1004)DOG43G4150 Workers Compensation 1,789.13 1,900.00 94% 900.00 13,598.35 27,182.00 50% 28,526.00 Supplies and Materials 100 -0000- 430 -4221 Operating Supplies 45.45 50.00 91% 100.00 45.45 50.00 91% 100.00 Purchased Services 1 Professional Services (Wass Monroe) 142,771.08 125,000.00 114% 75,000.00 100-ODDO-430-4331 Dues and Subscriptions (NAHRO, AICP) - 425.00 0% 500.00 1004XX)D-4304332 Communication (Allocation) 46.39 160.00 290A 460.00 10DODOO-430-4333 Transportation (Mileage Reimbursement) 92.95 150.00 62% 150.00 1 Advertising 17325 500.00 35% 500.00 1 Printing and Binding (Allocation) 3.89 320.00 1 % 320.00 1 Insurance - Non Personnel (Allocation) 4,240.11 16,000.00 27% 16,000.00 10D-0 430 4337 Conferenees/SeminarslTraining (Ehlers Seminar) 705.00 1,500.00 47% 1,500.00 100 -ODDO- 430.4338 Utility Services 277.15 1,000.00 28% 1,0 .00 100 -0000- 430 -4340 Services Contracted (Mowing Contract) 9,175.38 9,000.00 102% 12,000.00 157,485.20 154,055.00 102% 107,430.00 Capital Outlay 1004XXM-430-4350 Payments to Other Governments (Property Taxes) 11,972.80 - WA 5,000.00 100. 0000. 430 -4520 Capital Outlay - Buitding/LandPurchases - GWNE 635,327.47 1,400,000.00 45% 800,000.00 647,300.27 1.,400,000.00 46% 805,000.00 Total Expenses = 43anerai Fund 941=936'1-:', 1,865,287A0 Notincome-- GeneratFund - (868.84039){ . -: 3;130.480.00} -,t :i68�x "t0380j Unaud9ed Date - Fw hbn"emetn Purposes 01 City of Fridley HRA 2010 Budget Housing Loan Program 4 City of Fridley HRA Budget Fiscal Year 2009 Account Description 265 - Housing Loan Programs Revenues Other Miscellaneous Revenue 265-0000 -362 -1000 Interest on Investment Earnings 265. 0000 -362 -1501 Interest on Mortgages (Pool 0, 1, 2) 265-0000 -362 -1500 Interest on Mortgages (Poo/ 31ACCAP) 2654KM362 -6100 Miscellaneous Revenue (Sale ofhome +Home and Garden Show) 2009 Activity YTD as a % of through 11130i09 FY 2009 Budget Budget FY 2010 Budget 6,232.00 99,000.00 6% 45,000.00 36,326.00 44,000.00 83% 44,000.00 3,533.00 3,400.00 104% 3,400.00 20230.00 19,000.00 106% 219 00000 66,321.00 165,400.00 40% 311 40000 Total Revenues-Housing Programs 66.32C 00 YBS 40000 40% 319 "400 00" Expenses Purchased Services 2654X*0-430-4330 265-00004304335 26540(X0. 430-4340 265.0000- 430-4341 265. 0000 - 4754610 Professional Services (Castle Vision - Home Show) Advertising (Clear Channel - Home Show) Printing and Binding (Advantage Sign - Home Show) Services Contracted (CEE+Contrectors on Home Remodel Demo) Charges/Rentals (National Sports Center/Cenalko - Home Show) Debt Service/Interest Expense (1.5 Milton Loan with City) 2654X00- 430 -4510 Land(Puchase of home for Home Remodeling Demo Project) 10,400.22 10,000.00 104% 10,000.00 564.45 1,000.00 56% 1,000.00 1,746.27 500.00 349% 500.00 10,634.00 25,000.00 43% 130,000.00 8,39727 8,000.00 105% 9,000.00 6,936.98 13,000.00 53% 38,681.19 57,500.00 67% 50 50000 150,5W.00-' 00/0 120,000.00 Total Exienaes -- Housing Programs 38 68119 = 67,600.00 777Wi7777777iR.$0W Not Income: - Hotuitg Programs 27 09,81,' 107900.00 :.'. 40 800'00, Unaudited Data - For ManagemeM Purpwes only City of Fridley HRA 2010 Budget Tax Increment Districts 7 City of Fridley HRA Budget Fiscal Year 2009 2009 Activity YTD as a % of Account Description through 11/30/09 FY 2009 Budget Budget FY 2010 Budget 460 - Center City (1979 -2009) Decertified Revenues City Revenues 450- 0000 -311 -1000 Tax Levy 312,880.00 615,000.00 51% 45240000 - 311 -2000 Tax Levy - Delinquent Years 450- 0000 - 311 -2000 Tax Levy - Delinquent Years 5,027.54 - N/A 450 -0000- 334 -1000 Residual MV Homestead Credit - - N/A 317 887.54 615,000.00 52% Other Miscellaneous Revenue 450 -0000 -362 -1000 Interest on Investment Earnings 5,893.78 81,000.00 7% 5,893.78 81,000.00 7% Total Revenues Center City, 323781.32. :. Expenses Purchased Services Professional Services 681.60 5,000.00 14% 5,000.00 45040000 - 475.4350 Payments to other Agencies 1,755,062.00 ` 681.60 5,000.00 14% 1,760,062.00 Other Finance Uses 450 - 0000 - 4754750 Payments to Primary Governments (payment and early call 20048) 86,594.12 13,000.00 668% 1,505,320.00 86,594.12 13,000.00 666°/0 1,505,320.00 Total Expenses --Center City 681.60 ::. 18 000.00_ ,;! 4• %. 3 28b 382 OZ , Net income - Center City 323,()99.72,,­ 678,000A0..; - -4 (3 265;362 ODj 451 - Moore Lake Area (1981 -2007) Decertified Revenues Other Miscellaneous Revenue 45140000 -362 -1000 Interest on Investment Earnings - N/A N/A TotaLRevenues� Moore Lake:WlA Expenses Purchased Services 451- 0000 - 430 -4330 Professional Services N/A N/A Other Finance Uses 45140000- 4754750 Payments to Primary Governments (2004B and 2005B Bonds) N/A N/A TotatExpenses -.Moore Lake,NfA Not lneome' =Moore:Lake { 452 -North Area (1982 -2008) Decertified Revenues City Revenues 452- 0000 -311 -1000 Tax Levy N/A 45240000 - 311 -2000 Tax Levy - Delinquent Years N/A N/A Other Miscellaneous Revenue 452 - 0000.362 -1000 interest on Investment Earnings 440.00 N/A 440.00 N/A Total Revonues -'NoRh Area 440.001." Expenses Purchased Services 45240000- 430-4330 Professional Services 681.60 N/A 450-0D00- 475.4350 Payments to other Agencies - N/A 681.60 N/A Other Finance Uses 45240000- 475-4750 Payments to Primary Governments (2004B and 2005B Bonds) 1,689,900.88 1,750,000.00 97% 1,800.00 1,689,900.88 1,750,000.00 97% - 1,800.00 Total Expenaes -North Area '1 680 582.48.,,',' • • ' 1 50 .00 !i 97%- .. . "" :z ;$00:00;;: Unaudbd Dale - For Managemerd Purposes Only 8 City of Fridley HRA Budget Fiscal Year 2009 City Revenues 456-O000 -311-I0DO Tax Levy 2009 Activity 72,ODO.00 YTDasa%of Account Description through 11130109 FY 2009 Budget Budget FY 2010 Budget Nat Income "- North Area Q 16-ft, 142AM; - IM _§PL]M 00 777T ..... 1 36,267.00 72,000.00 500/6 61,617.00 456 - Lake Pointe (1985-2025) 238.00 2,000.00 12% Revenues 238.00 2,000.00 City Revenues 455-0000 -311 -1000 Tax Levy 430,464." 720,000.00 60% 742,000.00 455-COOD-311-2000 Tax Levy- Delinquent Years 745.00 431,209.44 - 720,000.00 MIA 745.00 61)% 742,000.00 Other Miscellaneous Revenue 45540000 -362-1000 interest on Investment Earnings 256.00 2,000.00 13% 1,000.00 Expenses 256.00 2.W0.00 13% 1,000.00 TQtW,Rovsnu9s�Lak9P*ftft,�-, 431.40,"", Gow 7,2240002()i� 7 1200.00 57% 1,200.00 Expenses 1,200.00 57% 1,200.01) Purchased Services 455-0000 4304330 Professional Services 1,095.35 1200.00 141% 1,200.00 1,695.35 1200.00 141% 1,200.00 Capital Outlay 455400X)-430-4536 Parking Facilities (Medfrordc Pay SS You 90) 388.088.68 648,000.00 W% 667,8W.00 388,086.68 648,000.00 60P% 667,800.00 Total Expenses Lake Points 5f 57%:, Notincciffib Lake Pointe 466 - Winfield (1986-2012) Revenues City Revenues 456-O000 -311-I0DO Tax Levy 36,219.00 72,ODO.00 50% 61,617.00 45643000-311-2000 Tax Levy - Delinquent Years 48.00 - N/A - 36,267.00 72,000.00 500/6 61,617.00 Other Miscellaneous Revenue 456- 0000 - 362 -1 DO) Interest on Investment Earnings 238.00 2,000.00 12% 2,300.00 238.00 2,000.00 12% 2,300.00 Total ReV6nUe8,VWnftjd' 36,50&00L:,­­ ;.",--_,74. 000.00. 49A Expenses Purchased Services 456-DOOD430-4330 Professional Services 681.60 1200.00 57% 1,200.00 681.60 1,200.00 57% 1,200.01) Capital Outlay - N/A 456-0000-4304521 Capital Outlay - NIA Totall Exoenses,- VVMOW,, L, 5f 57%:, 35, 468 - Onan (1989-2015) Revenues City Revenues 45840000-311-1000 Tax Levy 193,320.00 380,000.00 61% 336,395.00 458-ODOO-311-2000 Tax Levy - Delinquent Years 226.00 - N/A --- 193,546.00 380,000.00 51% 336,395.00 Other Miscellaneous Revenue 458-O000-362-1000 Interest on Investment Earnings 777.55 6,000.00 13% 8,700.00 777.55 6,000.00 13% 8,70).00 UmLmftd Data - For Wanagmwd Purposes Only 9 City of Fridley HRA Budget Fiscal Year 2009 City Revenues 483- 0000 - 311 -1000 2009 Activity YTD as a % of Account Description through 11/30109 FY 2009 Budget Budget FY 2010 Budget Total - Revenues'Oman;: 194323.68. 388000.00, 80 %.�, Other Miscellaneous Revenue 66.00 1,DDD.00 7% 607.00 463-0000 -362 -1000 Expenses 66.00 1,000.00 7% 607.00 Purchased Services 681.60 1,500.00 45% 1,500.00 458.0000.430.4330 Professional Services 661.60 1,500.0D 45% 1,500.00 Capital Outlay Purchased Services Professional Services N/A 1,500.00 458- 0000-430 -4521 Capital Outlay - Northstar Land Acquisiton - 681.60 1,500.00 45% 1,500.00 NIA Total Ex -Oman 681.60 [; 1.500.00 463 -0000- 430 -4521 Capital Outlay N/A Total fXtmnsw McGlynn 193 641 M', :: =384;800 00 k' 343;895 OD. e Net income Onan 48 ° %', 18b0.00f^ Net Income McGlynn 19 810A0' <. 39;800:00 = 462 - University /Osbome (1992 -2018) Revenues Revenu 48 - 0000 -3111 -1000 Tax Levy 33,651.00 50,000.DO 67% 67,500.00 46240000- 311 -2000 Tax Levy - Delinquent 6.00 - NIA 33,657.00 50,000.00 67% 67,500.00 Other Miscellaneous Revenue 78.00 1,000.00 8% 500.00 462- 0000 -362 -1000 Interest on Investment Earnings 78.00 1,000.00 8% 500.00 Total Revenues - UnNers /Osborne 33 738 00 •::' ° : e 31000 00 ::i .., $8`000.00;.; Expenses Purchased Services 462 4X000 - 430 -4330 Professional Services 681.60 1,500.00 45% 1,500.00 681.60 1,500.00 45% 1,500.00 Capital Outlay 462-00-430-4521 Capital Outlay - Northstar Land Acquisition 00 90.00 NIA 00.00 N/A - TotalEXpenSea UnivemitylOebome 77160 , 1;6P0'� Net Income University /Osbdme > 32.963.40 :::. ; :' . ::49 500.00 463 - McGlynn (1992 -2019) Revenues City Revenues 483- 0000 - 311 -1000 Tax Levy 20,226.00 40,000.00 51% 40,500.00 20,226.00 40,000.00 51% 40,500.00 Other Miscellaneous Revenue 66.00 1,DDD.00 7% 607.00 463-0000 -362 -1000 Interest on Investrnent Eamings 66.00 1,000.00 7% 607.00 TotelRevenoes' McGlynn 20.292.00::. " , :'41,000.00 Expenses Purchased Services Professional Services 681.60 1,500.00 45% 1,500.00 681.60 1,500.00 45% 1,500.00 Capital Outlay N/A 463 -0000- 430 -4521 Capital Outlay N/A Total fXtmnsw McGlynn 881 80 - • 1800 00 -" 48 ° %', 18b0.00f^ Net Income McGlynn 19 810A0' <. 39;800:00 = _ 39;W7 0 Unaucftd Mft - For Manegm tt PurPosm one 10 City of Fridley HRA Budget Fiscal Year 2009 Account Description 464 - Satellite (1995-2023) Revenues City Revenues 464-0000 -311-1000 Tax Levy 4640000-311-2000 Tax Levy - Delinquent Years 464-0000-33410130 Residual MV Homestead Credit 2009 Activity YTD as a % of through 11130MO FY 2009 Budget Budget FY 2010 Budget 25,655.00 54,0OD.00 48% 47,628.00 - N/A - N/A 25,655.00 54.000.00 480/a 47,628.00 Other Miscellaneous Revenue 464- 0000. 362 -1 000 interest on Investment Earnings 127.00 15,000.00 1 % 489.00 127.00 15,000.00 1% 469.00 Total Revenues - Satellite --25,782.00, +.. 69 0010.00 37 48,097.00 Expenses Purchased Services 464-00004304330 Professional Services 681.60 1,500.00 45% 1,50020 681.60 1,600.00 45% 1,500.00 Capital Outlay 464-0000-430-4521 Capital Outlay - Northstar Land Acquisition N/A NIA Total Ex0ensmv-Sidelifte, Nettricorne, = Satellite 25;100M� 67A00.00, `„ 4868TAOif 467 - 67th Ave (1997-2023) Revenues City Revenues 487-0000-311-1000 Tax Levy 467-0000-311-2000 Tax Levy - Delinquent Years 14,845.15 27,000.00 55% 27,217.00 8.06 N/A 14,853.21 27,000.00 55% 27,217.00 Other Miscellaneous Revenue 467-0000-362-1000 Interest on Investment Earnings 7.00 N/A 7.00 N/A TotalRevenues .57thAve Expenses Purchased Services 487400004304= Professional Services 681.60 1,500,00 45% 1,500.00 681.60 1,500.00 45% 1,500.00 Capital Outlay 42,0130.00 480A 41,557.00 4674X)DO-431-4510 Capital Outlay (Linn Pay as you go) 13,368.00 24.300.00 55% 24,495.00 - 13,368.00 24,300.00 55% 24,495.00 Total Expenses - 57th Ave 42,0DO.00 48% 41,567.00 Netlncome =b7thAvec. . . I , I I . 1�1� � �, * - , � 810.61; 1% 383.00 468 - Gateway East (2001.2028) Revenues City Revenues 468-0000- 311 -1000 Tax Levy 4684)000-311-2000 Tax Levy - Delinquent Years 468- 0000 - 3341000 Residual MV Homestead Credit Other Miscellaneous Revenue 468-O000-362-1000 Interest on Investment Earnings 20,029.00 42,0130.00 480A 41,557.00 NIA - - NIA 20.029.00 42,0DO.00 48% 41,567.00 10.00 1,DDO.00 1% 383.00 10.00 1,000.00 1% 383.00 Umud!bDd Date - For Vanagemrd Purpmes Only City of Fridley HRA Budget Fiscal Year 2009 2009 Activity YTD as a % of Account Description through 11/30/09 FY 2009 Budget Budget FY 2010 Budget Total Revenues Gateway East 20039.00 ; 43,00010'. 4T /o Expenses Purchased Services 46840000 - 4304330 Professional Services 681.60 1,500.00 45% 1,500.00 681.60 1,500.00 45 0k 1,500.00 Total Expenses Gateway East 681 60 7,600.00 Net Income Gateway East ' 40,440 00?1 470 - Gateway West (2005.2032) Revenues City Revenues 470 -0000-311 -1000 Tax Levy 470 - 0000 - 311 -2000 Tax Levy - Delinquent Years Other Miscellaneous Revenue 470 - 0000 -362 -5100 Sale of Mist Property 470 -x-362 -1000 Interest on Investment Earnings 470 -OD00 -362 -8100 Miscellaneous Revenue (Insurance Claim) 3,359.00 5,200.00 65% 10,468.00 449.00 N/A 3,808.00 5,200.00 73% 10,468.00 - 175,000.00 0% - N/A N/A 175,000.00 00/0 Total Revenues Gateway west ' 3 808.00 ?''. " 180;200 00 .'' 2°!0 ' ` Expenses Purchased Services 470.0- 430 -4330 Professional Services (Loan C loses) 470-0010- 430 -4340 Services Contracted (Mowing Contract) 4704)000- 430 -4350 Payments to Other Govemments (Anoka Courtly - Property Tax) Capital Outlay 470 4)000. 430 4530 Improvements other than building (Final Asphalq 6,523.34 5,OOO.DO 130% - 3,170.00 4,000.00 79% 2,500.00 WA 9,893.34 9,000.00 108% 2,500.00 Total Expenses = Gateway West 693.34 9,DOOAO : 108°!x`;; , _- , '500500' NetfncomeGateway;West' (5,868.341 171,200.00'.;,; 472 - TIF #19 (2009 -2034) Revenues City Revenues 472 -0000- 311 -1000 Tax Levy 66,625.00 149,000.00 45% 124,000.00 472 - 0000 -311 -2000 Tax Levy - Delinquent Years WA - 66,625.00 149,000.00 45% 124,000.00 Other Miscellaneous Revenue 472 - 0000362 -1000 Interest on Investment Earnings 3.00 WA - 3.00 WA TotalRevenues - TlF fk19 149,000.00 46% = . 124,t)OODO; Expenses Purchased Services 472 - 0000430 -4330 472 -0000- 431 -4510 Professional Services Capital Outlay (Pay as you go) 851.10 59,962.64 60,813.74 6,000.00 134,100.00 140,100.00 14% 6,000.00 45% 111,600.00 431/4 117,600.00 Total Expenses-TIF#19 140,10010 Not lncome ".-1IF.#i9.': 8,81428 : - -, ., ;8,900.08';: Umuaftd Date -Fm�&nnerrwrd ftrposm Only 12 City of Fridley HRA Budget Fiscal Year 2009 2009 Activity YTD as a % of Account Description through 11/30/09 FY 2009 Budget Budget FY 2010 Budget 501 -Housing Replacement (1997 -2024) Revenues City Revenues 501-0000- 311 -1000 Tax Levy 14,622.00 29,000.00 50% 16,863.00 50140000 -311 -2000 Tax Levy - Delinquent Years - NIA 501- 0000 - 334 -1000 MV Homestead Credit - - WA 14,622.00 29,000.00 50% 16,863.00 Other Micellaneous Revenue 50140000 -362 -1000 Interest on Investment Earnings 577.00 8,000.00 7% 4,355.00 577.00 8,000.00 7% 4,355.00 Total Revenues Housing Replacement s 46199.00 37 000 00 `': s 41 %'; ; 2 F218:0O; Expenses Purchased Services 501 Professional services 18,331.94 1,000.00 1833% 1,OOO.DO 5014X - 430-43411 Services Contracted (Mowing Conn acq 576.00 5DO.00 115% 500.00 18,907.94 1,500.00 1261% 1,500.00 Total2ve nses Housing Realecemertt 18 907 94 y 600A0 ', <. 12&1 °k 1;1500 00: Net income - Housing Replacement Grand`TotaiMetlncome I1;J836$OttO)." Al 4101 UnaudBed Data - Fm MarMeMM Purposes 0* 1 3 ■' INFORMATIONAL ITEM M` HRA MEETING OF FEBRUARY 412010 QTY OF FRIDLEY Date: January 30, 2UU9 To: William Burns, City Managerj- From: Paul Bolin, Asst. Executive HRA Director Subject: Home Improvement Demonstration Project Update After a lengthy search, staff has found the "right" home for the project. The HRA is set to close on the property located at 831 Mississippi Street on Friday February 5th. The home met all of the correct criteria for inclusion: 1) it is a vacant rambler; 2) in a visible location; 3) structurally sound; 4) priced correctly; and 5) in need of repairs and updating that will not require excessive investment from the HRA. We were able to avoid the delays of trying to purchase a bank owned home by finding this vacant estate owned home. The $134,900 asking price for the home was slightly above the HRA's spending cap of $130,000, but through negotiation we were able to settle on a purchase price of $127,500. Staff has developed criteria for selecting a remodeling contractor, using a request for qualifications format. Open houses will be held for interested remodelers to view the home prior to submitting their letter of interest/qualifications. Staff will evaluate proposals based on the contractor's experience with older rambler remodels, originality of updates, project budget and timeline, and an understanding of the demonstration program's intent. A recommendation will be brought to the Authority at their March 4th meeting. Once selected, the selected contractor will: ❑ Develop a scope of work and a project budget for making the home meet the needs and desires of today's homeowners. ❑ Complete the work identified and mutually agreed upon by HRA Staff. Staff anticipates that the home will require a combination both exterior improvements (windows, doors, siding, roof, driveway, landscaping and possibly garage) as well as interior updates (kitchens and baths, flooring, and other minor finishing). Staff has a similar process to retain a realtor/broker for staffing the open houses for the project and to list and sell the home upon completion. Additionally, staff has been working on marketing pieces to promote the program (city newsletter, cable TV, City website, etc.) and ensure its success. Fridley HRA Housing Program Summary Cover Page February 4, 2010 HRA Meeting Report Description Loan Application Summary Loan application activity (e.g. mailed out, in process, closed loans) for January and year -to -date. Loan Origination Report Remodeling Advisor Loan originations for January and year - to -date. Shows the number of field appointments scheduled and completed for the Remodeling Advisor Services administered by Center for Energy and Environment. H:\—Paul's Documents\HRA\HRA Agenda Items\20I OTebruary 4, 2010\Housing Program CoverFebruary.doc w! � I J � rn cl o, R' 'Q � Qi 2 O c 4. f� 2 ?� H Q M G -ji H c 0 Q � . c 07. R C O. � Q Z Q 1 m CD EO N E c m N C r T C i �O � co m 0.0 ■ /1 Q 7I D s s D P o O o O O o O o 0 0 D 3 u B 3I v n rDd n P O o O O o o O o O V =1 7 N O O O O O O O O O CD A C O 0 N_ W C ❑ W C = LL 3 m Li a _ _ to = = = 'O LL k 0 t J 7 R c=C LL LL J zt�.O LL r Co J l yC 'O'� 7-- i d d co -i a U. 7 7 0 0 C QE ELu �aW m x O o E > m a=i c N P t%ll fi to O H ai fn 3 W W L) m .c E 0 c 0 r �a Q CL d t a� c 'v 0 c 3 O v 2 CD c 3 0 m 0. 0 Q C O O c Y c0 O c fn d O .a 7 O C m to N C O r R V Q Q. O d .n Z Fridley HRA Loan Origination Report January 28, 2010 Loan Originations This Previous Month Months Since 11112010 HRA Loans (incl. CFUF Discount loans) - - HRA Deferred Loans Other Loans (non -HRA) Total Funding Sources This Previous Month Months Since 1/112010 Fridley HRA $ - $ $ MHFA FUF /CFUF $ 6,404.92 $ $ 6,404.92 Met Council $ - $ $ CDBG /HOME $ $ $ - CEE $ $ $ Other $ $ $ Total $ 6,404.92 $ - $ 6,404.92 Types of Units Improved* *some households receive more than 1 loan, so the # of loans may not equal # of units improved This Previous Month Months Since 11112010 Single Family Duplex Tri-Plex 4 to 9 Units - 10 to 20 Units - 20+ Units Total 1 1 Types of Improvements Interior # of Projects % of Total Bathroom remodel - 0% Kitchen remodel 0% General plumbing - 0% Heating system 0% Electrical system 0% Basement finish - 0% Insulation 0% Room addition 0% Misc. interior projects - 0% Foundation 0% Exterior Siding /Fascia/Soffit - 0% Roofing - 0% Windows /Doors 1 100% Garage 0% Driveway /sidewalk - 0% Landscaping 0% Misc. exterior projects - 0% - 0% O r O N I U) V C0 L O T) MID �I G1 O E 0 r O N CO N w C m N d 4 - d E 0 0 0 0 0 0 0 0 0 0 0 0 0 O Cam,. V a w ES C d 0 0 0 0 0 0 0 0 0 0 0 0 0 o s aN a • s 0 0 0 0 0 0 0 0 0 0 0 0 Voksm FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY February 4, 2010 MEL13 1. Northstar Update Overall ridership numbers are still exceeding expectations. In a recent meeting with Metro Transit they did commit to having a study of ridership specific to our station completed sometime later this spring. The purpose of the recent meeting was to discuss the survey Dr. Burns had done of area businesses to gauge the need for shuttle service within Fridley. Metro Transit is working to further refine the data, but preliminarily there isn't enough demand for a wide ranging shuttle service at this time. On Tuesday night I was asked to testify before the House Transportation Finance Policy committee on a piece of the proposed bonding bill. MN Solutions is working with DEED (formerly DTED) to create transit improvement areas around transit stations. DEED would provide money to communities for sidewalks, trails, and those other hard to fund improvements around transit sites. This will initially be a loan program, but allows city's to pay the money back with future TIF revenue. Tuesday night the Committee did approve moving the $5M funding piece onto the next round of bonding bill discussions. 2. Gateway Northeast Update TKD I1 Kim, owner of the Tae Kwon Do studio has finally responded to our January 2009 offer of $320,000. Mr. Kim has sent a letter stating he would like $425,000 to "compensate me for the loss of business due to relocation, moving costs and business interruptions". Staff believes that $425,000 is too much to pay for this property. While there are some economic and aesthetic reasons to purchasing Mr. Kim's property on a voluntary basis, his desired number is not backed by any hard data. Staff strongly believes that the HRA should pay no more than $375,000 for the property and associated expenses. The $320,000 is from an August 2008 appraisal, outdated but an appraisal none the less. $50,000 would be the "business reestablishment" that statute would require the HRA to pay if they acquired through eminent domain and $5,000 would be for actual moving expenses. Demolition Not surprisingly, the soil samples taken from the former Sinclair station during tank and hoist removal found some minor contamination under the area where the hoists were located. The good news is that there is very little contamination and that it is possible that no additional work may be required. The following from Liesch Associates explains in better detail: "Lab Results from samples collected beneath the USTs (B -1 through B -4) indicate the samples were "clean ". Results from samples collected beneath the removed hydraulic hoist and waste trap indicate Diesel Range Organics (DRO) detections. PCB (aroclor 1254) was also detected in the sample collected beneath the former waste trap, however the level appears to be below any regulatory guideline. It is Liesch's recommendation to report the DRO release to the Minnesota State Duty Officer to maintain MPCA compliance. A new Leak number may be given to the site for this release. I am currently working on finishing the Tank Excavation Report which will summarize the laboratory results and activities completed during the recent tank, hoist excavation. Based on the soil impact levels indicated in the samples collected during the UST Excavation, Liesch will be recommending closure if a new leak number is given. We also recommend contacting the MPCA project manager to discuss the results and history of the site, as the site received closure (1211812008) after a Limited Site Investigation submitted by the Javelin Group (August 2008). The discussion would assist in determining if the information in the excavation report would be sufficient for the MPCA to "close" the file for the newly discovered release or if the MPCA would require another Limited Site Investigation ". 3. HRA Owned Property Over the past two weeks, HRA & Planning Staff have had a number of discussions with Jim Faulkner a real estate developer, builder, and architect. Mr. Faulkner and his partners are the group that has built a handful of senior memory care facilities throughout the metro area, often under the "Comforts of Home" name. Mr. Faulkner has indicated an interest in purchasing 2 lots that the HRA owns near the intersection of Old Central and East Moore Lake Drive. These 2 properties surround the Ziebart building on the corner and would require extensive soil corrections. Mr. Faulkner has indicated that he is working on some potential site plans and sometime soon will likely make a formal offer to purchase. Mr. Faulkner has indicated that the 1.5 acre site north of Ziebart would be used for senior memory care and that the 3/4 acre site west of Ziebart could be constructed for speculative retail. 4. Decorative Fence The decorative fence has been repaired and the League of MN Cities insurance folks are close to getting reimbursement from the driver's insurance company. 5. Cub Foods Tri-land development group, has received the approvals from the Planning Commission needed to redevelop the Cub Foods/Fridley Liquor store site as a Planned Unit Development. The land use application now moves on to the City Council and Tri-land will likely have all necessary approvals in early March. Tri-land plans to begin construction of phase 1 in June. . Fridley Housing and Redevelopment IFAuthority MEMORANDUM DATE: January 30, 2010 TO: William W. Burns, Executive Director of HRA FROM: Paul Bolin, Assistant HRA Director SUBJECT: Contract Extension with CEE for Administration of Loan Programs Introduction The Center for Energy and Environment (CEE) is the non -profit agency responsible for administering the HRA's housing rehabilitation programs. The Authority has contracted with CEE since 1996 to oversee the housing programs. Partnering with CEE, allows the HRA to outsource most of the administrative functions, including program marketing, loan processing, underwriting, loan closing, and disbursements to the contractors. CEE is able to provide technical assistance to Fridley homeowners on such topics as remodeling, energy conservation, indoor air quality and related subjects. The partnership with CEE allows the Authority to leverage its resources with outside dollars (e.g. Minnesota Housing Finance Agency, Met Council, Federal funds, etc.) and customize loan packages to meet individual homeowners' circumstances. The current agreement with CEE expired on December 31, 2009. Staff believes it is important to continue working with CEE and is recommending that the HRA renew its commitment for another year. CEE is not seeking any changes in the rate of compensation for their services. Overview of Existing Agreement Attached is a copy of the proposed extension that would run through December 31, 2010. The following section summarizes the major contract components. Administrative Responsibilities CEE is responsible for administering a number of different loan programs on behalf of the Authority. Each of these programs is designed for a particular target market (e.g. very -low income, low income, or middle - income). When CEE receives an inquiry from an interested resident, several questions are asked in order to identify which program best meets their needs. At that point, CEE works with the resident to complete a loan application and collect the necessary information to evaluate their eligibility. Among the issues that will be examined are the borrower's income, credit history and related factors. CEE then outlines the financing options and helps the homeowner select the best terms and conditions. In some cases a loan might be funded by the Authority, while in other cases the loan might be funded by MHFA. Once a loan is closed, the funds are held in escrow until the work is completed; once the job is finished CEE verifies that all permits have been obtained and that the work has been inspected. The exception is for loans financed through MHFA, which does not have an escrow procedure in place. Loan Fees CEE is paid based on each loan that is made, rather than a flat administrative charge. If loans are originated under an MHFA program, MHFA pays CEE an origination fee ($550.00 per loan). If loans are originated under one of the Authority's programs, the HRA pays CEE an origination fee ($550.00 per loan). This rate of compensation is the same as the last agreement. Comprehensive Building Analysis (Remodeling Advisor) CEE is paid a flat fee of $130.00 per visit by the remodeling advisor. Generally, these visits take 1.5 to 2:0 hours to complete and are done on site at the resident's home. This rate of compensation is the same as the last agreement. Installation Verification CEE is paid a flat fee of $70.00 per inspection. Generally, if a building permit is required (and the work will be inspected by the city), CEE does not charge a fee. In cases where the work does not require a permit (e.g. carpet, painting, landscaping, fencing, etc.), CEE staff will make an inspection to verify that the work has been completed. This rate of compensation is the same as the last agreement. Recommendation Staff recommends that the Authority approve the amendment to the Loan Origination Agreement with the Center for Energy and Environment through December 31, 2010.