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01-21-86 agenda~'S / HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. ~+ Agenda January 21, 1986 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Request to City Council For Year XII CDBG Funds Dear Commissioners: This letter recommends that the HRA propose to the City Council that the council allocate $180,000 of Year XII CDBG funds to the HRA for housing related activities for the period July 1, 1986 through June 30, 1987. On the 10th of February, the City Council will be soliciting input from the public and other groups regarding the use of Year XII CDBG funds. Henenpin County will know about March 1st, what the anticipated funding level will be for Year XII. There is the potential for up to a 30~ decrease from Year XI. For Year XI Richfield received $206,839. The HRA received 75~ of that amount or $156,124 for housing programs. If Richfield experienced a 30% reduction in funds, the dollars available would be $138,582. Thus, the request for Year XII may be for the entire CDBG allocation to Richfield. For Year XI (July, 1985 - June, 1986), the CDBG funds were expended under two programs: New Home ($75,000) and Rehabilitation ($81,124). Twelve homes will be rehabilitated with $73,012 for loans and $8,112 for administrative expenses. New Home received $75,000. Approximately $34,800 is being utilized at Rae Drive, approximately $1,300 at the Humboldt Avenue Vo-Tech site and about $400 at 6820-12th Avenue.. A structure must be acquired for the 1986 Vo-Tech project on 12th Avenue and a vacant parcel will be purchased for approximately $31,000. The balance of $7,500 is for administration. For Year XII (July, 1986 - June, 1987), the use of CDBG funds is recommended as follows: Rehabilitation $100,000 Administration $10,000 Loans (approx. 15) 90,000 6 000 New Home $ 5, This amount would fund purchase and relocation costs of a property for the 1987 Vo-Tech project. Energy, low income conservation $ 15,000 Rehabilitation Program In its various forms since 1975, the Rehabilitation Program continues to be a very efficient way to expend CDBG funds. This program will never have enough funds to meet needs. However, as the following data indicates, a continuous contribution of approximately $100,000 every year benefits many. Since 1976, there have been approximately 210 households assisted with $751,000 in CDBG funds (through CDBG Year X). Projecting needs into the future is artifically controlled by program promotion. The program was last advertised in Spring, 1984• Response was adequate to satisfy the CDBG Year IX, X and XI demand (approximately 45 households assisted). The last seven residents on the waiting list have just now been contacted to complete the expenditure of CDBG Year XI funds. A promotion is scheduled for Spring, 1986, to prepare for the expenditure of CDBG Year XII funds. The target population continues to be lower income elderly and families. The families are often single parent heads of household, with children. The elderly are usually on fixed incomes. The deferred loan program is often the only way for lower income persons to make major repairs to improve their living conditions, and restore the condition of their property without assuming additional significant monthly debt. The "emergency loan" feature of the program continues to be useful to ensure that lower income people can resolve what seems like impossible situations for them: collapsed sewer lines, deteriorated roofs during the spring rains, and unreliable furnaces during the heating season. New Home Program The New Home Program has been in existence since 1975. Thirty units of housing have been constructed or rehabilitated. Ten units are under development. In the process, eleven"garage homes".have been eliminated, seventeen vacant lots developed, and two units received moderate rehabilitation. Revenues approximating $1,600,000, primarily CDBG funds, have made this possible. The benefits which aecure to the city because of the New Home program are many. Approximately $35,000 per year in increased revenues are being provided to various taxing jurisdictions. Additional families and their children are being attracted to the community because of the affordability of new housing. Substandard blighted structures are being eliminated as well as vacant lots, thus improving the attractiveness of the community. The requested $65,000 provides the acquisition, tenant relocation and demolition funds needed to obtain another Vo-Tech site for 1987. However, there are not enough CDBG funds available (except by special "reallocation" competition with other Hennepin County Communities) to proceed with major development projects for housing low and moderate income persons. A special allocation of $100,000 was secured in 1985 to assist the Fraser Section 8/Section 202 development for the handicapped. Energy Program A primary objective of the Residential Energy Conservation Program funded by the City and managed within the Housing and Redevelopment Division is to assist lower income people in reducing energy consumption and the impact of fuel costs. A majority of the financing resources for providing home improvement assistance and Energy Program administration have come from the Public Utilities (Minnegasco and NSP) and the State Department of Energy and Economic Development. For 1986, approximately $23,000 has been received from the City Council to continue program administration. Since the program was developed in 1983, approximately 100 lower income households have received "housedoetor" types of weatherization services totaling $50,000. These funds were provided by Minnegasco. The City and local banks have arranged for approximately 135 loans totaling $25,000 in energy conservation improvements. These reduced interest rate loans have gone to persons having incomes adequate to support a monthly loan payment. Staff has also programed educational workshops and audits that assist residents in identifying and prioritizing needed improvements. For the 1986 and 1987 energy program, it has been determined that the most cost effective delivery of weatherization services requires that various program elements be combined. The "Home Energy Check" concept combines an audit, education, and home improvements together. Minnegasco would pay $50 and the home- owner $10 for the home energy check audit. The city would use CDBG funds to pay for needed improvements ($100-$200 per household). It is anticipated that lower income persons could benefit from a modified "housedoetor" weatherization and heating equipment retrofit program. The $15,000 in CDBG funds requested would be distrubuted as grants to approximately 75 lower income households that would not otherwise be able to pursue these improvements. If funds are not adequate to support this request, staff will advise the city council on what priorities the HRA believes should be given the most consideration. It is recommended that the HRA adopt a motion directing the Executive Director to propose to the City Council that CDBG funds in the amount of $180,000 for the Rehabilitation, New Home and Energy Programs be allocated to the HRA and to make adjustments in this request if the CDBG funds made available to the City are insufficient to fund the total request. For the information of the HRA, all CDBG activities for Year XI (7/85-6/86) are as follows: Year Project-Activity Budget XI 091-General Administration $ 10,000 XI 092-Child Care Subsidy 20,000 XI 093-H.O.M.E. 7,923 XI 094-Public Service Admin. 2,792 XI 095-Recycling 10,000 XI 096-Rehab of Private Property 81,124 XI 097-Scattered Site Acquisition 75,000 YEAR XI TOTAL $20-6 This information includes activities outside the jurisdiction of the HRA. At the time of dictating this letter, the city manager had not received the proposed requests for Year XII CDBG funds from other organizations. Re eetf y submitted, r' John G. Cartwr ght Executive Director JCG/eja HOUSING AND REDEVELOPMENT AUTHORITY ~~' Office of Executive Director HRA Letter No. 3 Agenda January 21, 1986 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Resolution Designating Official Depositories Dear Commissioners: Attached to this HRA letter is a resolution naming the First Western Bank of Richfield as official depository for the Richfield Housing and Redevelopment Authority for the year 1986. The First Western Bank is pledging collateral in the amount of $602,763. This collateral pledge means that the HRA's deposits up to this amount are secured with the depository. In addition to this collateral pledge, HRA funds. are protected by the Federal Deposit Insurance Corporation in the amount of $100,000 making the total protection afforded by this depository for HRA funds equal to $702,763• A second resolution provides for designating certain other savings and loan associations as official depositories in which the Housing Authority will be able to invest funds not exceeding the Federal Savings and Loan insurance coverage of $100,000. Lastly, a resolution is provided which designates certain financial institutions as depositories for the investment of Housing Authority funds in 1986. These institutions offer government securities in a manner required bylaw. It is recommended that the Housing Authority adopt the three resolutions designating official depositories with the understanding that the HRA could not invest in any of these depositories beyond the level of pledged collateral or FDI coverage. Respectfully submitted, ohn G. Ca twr' ht Executive Dire for JGC/eja HRA RESOLUTION N0. ~~~ RESOLUTION DESIGNATING THE FIRST WESTERN BANK A DEPOSITORY OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FOR THE YEAR 1986 AND APPROVING COLLATERAL BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield as follows: That, in accordance with law, the First Western Bank be, and hereby is designated a depository of the funds of the Housing and Redevelopment Authority, and subject to the following terms and conditions: The said depository shall not be required to give bonds or other securities for such deposits provided that the total sum thereof shall not at any time exceed in any depository the sum for which its deposits are insured under the Acts of Congress of the United States relating to insurance of bank deposits; but not in ease such deposits in any such depository shall at any time exceed such insured sum, said .depository shall immediately furnish bonds or other security for such excess according to law, approved by the Housing and Redevelopment Authority of Richfield. That said depository shall pay on demand all deposits therein; and shall pay all time deposits, at or after the end of the period for which the same shall be deposited, on demand. BE IT FURTHER RESOLVED, that there shall be maintained a general account in which shall be deposited all monies. Checks on this account shall be signed by the following officers or their facsimile signatures. Thomas E. Harms, Chairman John G. Cartwright, Executive Director BE IT FURTHER RESOLVED, that there shall be a daily interest savings account. All withdrawals from said account will be for transfers to the general checking account. BE IT FURTHER RESOLVED, that the collateral in the amount of $702,763 deposited for safekeeping at the F & M Marquette National Bank of Minneapolis, is hereby approved. Passed by the Housing and Redevelopment Authority of Richfield this 21st day of January, 1986. Thomas E. Harms Chairman ATTEST: Joan Helmberger Secretary RESOLUTION N0. A RESOLUTION DESIGNATING CERTAIN SAVINGS AND LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY FUNDS IN 1986 WHEREAS, pursuant to Minnesota Statutes, Section 475.66 and 118.17, municipal funds may be deposited in any Savings and Loan Association which has its deposits insured by the Federal Savings and Loan Insurance Corporation, and WHEREAS, the amount of said deposits may not exceed the Federal Savings and Loan Insurance Corporation insurance covering such deposits which insurance amount is presently $100,000, and WHEREAS, the deposit of Housing and Redevelopment Authority funds in Savings and Loan Associations and Banks would provide greater flexibility in the Housing and Redevelopment Authority's investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield as follows: 1. It is hereby found and determined that it is in the best interests of the proper management of Housing and Redevelopment Authority funds that certain Savings and Loan Associations and Banks be designated as additional depositories for Housing and Redevlopment Authority funds for 1986. 2. The following Savings and Loan Associations anal Banks are hereby designated as additional depositories for Housing and Redevlopment Authority funds: First Federal Savings of Minneapolis 6445 Nicollet Avenue South Richfield, MN 55423 Minnesota Federal Savings 98 West 66th Street Richfield, MN 55423 Midwest Federal Savings & Loan Association 3100 West 66th Street Edina, MN 55435 Twin City Federal Savings and Loan 3330 West 66th Street Edina, MN 55435 3. It is further found and determined that the purpose of such depository designation is to facilitate the proper and advantageous investment of Housing and Redevelopment Authority funds and that such designation is not exclusive nor does it preclude the deposit of any ~- Housing and Redevelopment Authority funds in other officially designated depositories of the Housing and Redevelopment Authority. ~4. The Executive Director is hereby authorized to deposit Housing and Redevelopment Authority funds in any or all of the depositories herein designated up to the amount of $100,000, or such other amount as may be subsequently permitted by law, such deposits to be in the form of demand accounts for Public Unit Savings Certificates purchased by the Housing and Redevelopment Authority of Richfield, payable to the Housing and Redevelopment Authority of Richfield on the signatures of the Executive Director. Passed by the Housing and Redevelopment Authority of Richfield this 21st day of January, 1986. Thomas E. Harms Chairman ATTEST: oan Helmberger Secretary -.~ RESOLUTION N0. A RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 1.986 WHEREAS, the Housing and Redevelopment Authority of Richfield has money which is available for investment, and WHEREAS, different financial institutions offer different rates of return on investments, and WHEREAS, the Housing and Redevelopment Authority of Richfield shall purchase U. S. Treasury Bills, U. S. Treasury Notes and other such government securities in the manner required by law from the institution offering the highest rate to the City providing greater flexibility in the investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield, Minnesota, as follows: 1. It is hereby found and determined. that it is in the best interests of the proper management of Housing and Redevelopment Authority funds that certain financial institutions be designated as additional depositories for Housing and Redevelopment Authority funds for 1986. 2. The following financial institutions designated as depositories for Housing and Redevelopment Authority funds: F & M Marquette National Bank Merrill Lynch, Pierce, Fenner & Smith, Inc. Dain Bosworth, Lnc. Prudential - Bache Kidder, Peabody & Company Miller Schroeder Norwest Investment Services Offerman & Company, Inc. Piper, Jaffray & Hopwood State Street Bank & Trust, Trust for Short-Term U. S. Government Securities 3. The Treasurer is hereby authorized to deposit Housing and Redevelopment Authority funds in any or all of the depositories herein designated. Such deposits may be made and withdrawn from time to time by the Treasurer as his/her best judgment and the interests of the Housing and Redevelopment Authority dictates. ~. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies regarding the investment of these funds. P ed b the Housin and Redevelo ment Authorit of `~ ass y g P y Richfield this 21st day of January, 1986. Thomas E. Harms Chairman ATTEST: Joan Helmberger Secretary ~a i HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 2 Agenda January 21, 1986 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Amendment to the Housing and Redevelopment Authority By-Laws Commissioners: Article III-Meetings, Section 1., Annual Meeting, of the by- laws of the Richfield Housing and Redevelopment Authority provides that the annual meeting of the Authority shall be held on the third Monday in January. This section does not provide for holding the annual meeting on the next succeeding day if the third Monday is a holiday. This language does appear in Section 2 which provides for holding regular. meetings. Beginning in January, 1986, the third Monday in January has been designated as the Martin Luther King holiday, and no governmental business may be conducted on that day. Therefore, it is recommended that the Authority amend the by-laws to provide for the annual meeting of the Authority to be held on the third Tuesday in January of each year. A copy of the Housing and Redevelopment Authority by-laws is attached to this HRA letter. Respectfully submitted, John G. Ca twr' ht Executive Dire for JGC/eja a-~ BYLAWS OF THE. HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD,. MINNESOTA ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The name of the Authority shall be the "Housing and Redevelopment Authority of Richfield, Minnesota". Section 2, -Seal of Authority. The seal of the Authority shall be in the form of a circle and shall bear the name of the Authority. Section 3o Office of Authority, The offices of the Authority shall be at City Ha11 i.n the City of Richfield, State of Minnesota, but the. Authority may hold its meetings at such other place or places as it may designate by resolution, ARTICLE II - OFFICERS_ Section 1. Officers. The officers of the Authority shall be a Chairman, A Vice-Chairman,, and a Secretary. Section 2. Chairman, The Chairman shall preside at all meetings of the Authority, Except as otherwise authorized by resolution of the Authority, the Chairman shall sign all contracts, deeds and other instruments made by the Authority, At each meeting the Chairman shall submit such recommendations and information as he may consider proper concerning the business9 affairs and policies of the Authority, Section 3o Vice-Chairman, The Vice-Chairman shall perform the duties of the Chairman in the absence or incapacity of the Chairmana and. in case of the resignat3.on or death of the Chairsnan9 the Vice-Chairman shall perform such duties as are imposed on the Chairman until such time as the Authority shall select a new Chairman, ~-3 Section 4. Secretary. The Secretary shall perform the duties of a Secretary for the Authority. Section 5. Executive Director. The Authority shall employ an Executive Director who shall have general supervision over the administration of its business and affairs, subject to the direction of the Authority. H.e shall be charged with the management of the housing projects of Authority. Section 6. .Other Administrative Officers. The Authority may designate an assistant to the Secretary who shall keep the records of the Authority, shall act as recorder of the meetings of the Authority and record all votes, and shall keep a record of the proceedings of the Authority in a journal of proceedings to be kept for such purpose, and shall perform all duties incident to his office, He shall keep in safe custody the seal of the Authority and shall have power to affix such seal to all contracts and instruments authorized to be executed by the Authority. The Authority may designate a Treasurer who shall have the care and custody of all funds of the Authority and shall deposit the same in the name of the Authority in such bank or banks as the Authority may select, The Executive Director and the Treasurer shall sign all orders and checks for the payment of money and shall pay out and disburse such moneys under the direction of the Authority. Except as otherwise authorized by resolution of the Authority, all such orders and checks shall also be counter_signed by the Chairman, The treasurer shall keep regular books of accounts showing receipts and expenditures and shall render to the Authority, at each regular meeting (or oftener when. requested), an account of his transactions and also of the financial condition of the Authority. He shall give such bond for the faithful performance of his duties as the Authority may determine ~/ ARTICT<E III MEETINGS Section 1, .Annual Meeting. The annual meeting_of the Authority shall be h~1.d on the t~7ird Monday in January at .'7;30 o'clock p.m. at the regular meeting place of the Authority. Section 2. Regular Meetingso Monthly meetings shall be held without notice at the regular meeting place of the Authority on the tk~ird Monday of each monti~H at 7s3p o'clock p.m. unless the same shall be a legal holiday, in which event. said meeting shall be held on the next succeeding secular day, Section 3, Special Meetingso Special meetings of the Authority may be called by the Chairman,. or two members of the Authority for the purpose of transacting. any business designated in the call, The call for a special meeting may be delivered at any time prior to the time of the proposed meeting to each member of the Authority or may be mailed to the business or home address of each member of the Authority at least two (2) days prior to the date of such special meeting, At such special meeting no business shall be considered other than as designated in the call, but if all of the members of the Authority are present at a special. meeting, any and all business may be transacted at such special meeting, Section 4o uorum. The powers of the Authority shall be vested in the Commissioners thereof in office from time to timed Three Commissioners shall constitute a 4uorum for the purpose of conducting its business and exercising its powers and for all other purposes, but a smaller number may adjourn from time, to time until a quorum is obtained. When a quorum is in attendances action may be taken by the Authority upon a vote of a majority of the Commissioners presento `~ ~~~ Section 7d Combining. Administrative ®fficeso Compensationo The compensation of the Executive Director and other personnel of the Authority shall be determined by the Authority. Any two or more administrative offices may be combined, Section 8a Additional Duties. The officers of the Authority shall perform such other duties and functions as may from time to time be required by the Authority or the bylaws or rules and regulations of the Authoritye Section 9o Election or Appointment, The first Chairman shall, pursuant to his appointment, serve in the capacity of Chairman until the expiration of his term of office as Commissioner. The Vice-Chairman, Secretary and, except in the case of the First Chairman, the Chairman shall be elected at the annual meeting. of the Authority from among the Commissioners of the Authoritye and shall hold office for one year or until their successors are elected and qualifiedo The Executive Director shall be appointed ley the Authoritye Any. person_ap- _poixited~~ to fill the office of Executive Director, or any vacar~Gy therein, shall have such term as the Authority fixes, but no Commissioner of the Authority shall be eligible to this office, Section 10, Vacancieso Should the office of Chairman, Vice-Chairman or Secretary become vacant, the Authority shall elect a successor from its member- ship at the next regular meeting, and such election shall be for the unexpired term of said officee Section 11, Additional Personnels The Authority may from time to time employ or contract for such personnel as it deems necessary to exercise its powers, duties and functions as prescribed by the Municipal Housing and Redevelopment law of Minnesota applicable theretoe Such personnel may be employees of the Authority, employees of other governmental organizations, or independent contractors, The selection and compensation of such personnel shall be determined by the Authority subject to the laws of the State of Minnesotaa -l~ Section 50 Order of Businesso At the regular meetings of the Authority the following shall be the order of business: 1o Ro11 Call, 2. Approval of the minutes of the previous meeting, 3e Reports of the Executive Director. 4o Unfinished business, 5, New businesses 6. Adjournments All resolutions shall be in writing and shall be cgpied in the journal of the proceedings of the Authoritys Section 6o Manner of Votings The voting on all questions coming before the Authority shall be by roll call, and the yeas and nays shall be entered upon the minutes of such meeting, ARTICLE ZV _ AMENDMENTS Amendments to Bylaws The bylaws of the Authority shall be amended only with the approval of at least three of the members of the Authority at a regular or a special meetingo Includes 4/21/80 amendments -~/ / HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 1 Agenda January 21, 1986 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Election of Officers for the Housing and Redevelopment Authority Dear Commissioners: The by-laws of the Richfield Housing and Redevelopment Authority provide that the annual meeting of the Authority be held on the third Monday in January. (Martin Luther King Holiday has been designated for January 20. Therefore, the HRA meeting will be held on Tuesday, January 21). The by-laws also require that the Chairman, Vice-Chairman, and Secretary be elected at the annual meeting. Officers for the years 1982-1985 are as follows: 1982 1983 Thomas Harms, Chairman Thomas Harms, Chairman Joan Helmberger, Vice-Chair Vern Luettinger-Vice Chair Michael Freeman, Secretary Joan Helmberger, Secretary 1984 1985 Thomas Harms, Chairman Thomas Harms, Chairman Vern Luettinger-Vice Chair Vern Luettinger-Vice Chair Joan Helmberger, Secretary Joan Helmberger It will be necessary for the commissioners to hold an election and elect these officers for 1986. This is the only special item of business required at the annual meeting and except for this item, the HRA meeting can be conducted as if it were a regular meeting of the Authority. Respectf 1 omitted, r J ohn G. Car wrigh Executive Di ct r JGC/eja