09-1246Council File #
Prese�ted By:
Referted To:
Green Sheet #
RESOLUTION
SAINT PAUL, MINNESOTA
09-1246
3086097
Committee: Date
Page t of 2
2009 City Budget Amendment conceming costs related to former City dump site at Rivoli Bluff
and requesting HRA to pay off balance of Federal 108 Loan (Railroad Island Prqect)
i
2 WHERFAS, in'1994 the Cityapproved the Railroad Island Small area plan to undertake the cleanup of the former
3 City dump site at Rivoli Bluff; and
5 W HERFAS, in 1997 the City initially approved $4W,��0 of CB tundi� tovrards the cfeao-up, which approval vras subsequenlly replaced
6 in 2007 by CF 07-124'I with $500,000 in Public Works financing from the Right of Way Maintenance Fund - Fund 225 ; and
8 WHEREAS in 2002, HRP, ftesoluflon # 02-03I�310 requested that ihe Ciry accept, from HUD, an $8,000,000 Federal 108 Loan, along
s with a previous $2.000,000 BEDI Grant, and that the HRA, on behalf of the Ciry, administer the loan and grant; and
io
11 WHEREAS, in 2003, the Ciry and HR4 entered into an $8,000,000 Note which obligated the HRA to repay the Federel 108 Loan
72 on behaif of the Ciry; and
13
14
ts
is
n
78
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WHERE4S, in CF 03-407, the City accepted the $10,000,000 in loan and grant funds from HUD and delegated to the HRA the
responsibility to administer the 108 Loan for two projects: Raitroad Island ($4.7 M loan and $1.0 M grant) and Westminster
Junction ($3.3 M loan and $1.0 M grent) ; and
WHEREAS, the HRA and Day[ons Bluff Neighborhood Housing Services (DBNHS) entered into a contract to do a multi-phase housing
prqect (Rivoli Bluff) in which HRA provided $4,700,000 under a note to DBNHS (DBNHS Note); and
21 WHEREAS, in 2007 DBNHS repaid the HRA $1,250,000, and the HRA on behalf of the Ciry, then repaid HUD under the Federal 108
22 Loan, leaving $3,450,00� pnncipal due by August 1, 2009; and
23
24 W NEREAS, over the last several years, DBNHS has incurted and paid costs related to the former ciry dump site and its impact
25 on the development of the adjacent HRA Railroad Island Housing Pmject; and
26
27 W HEREAS, ihe city staff have reviewed those costs and have agreed thai ihe costs to be reimbursed by the Ciry are
28 $'1,399,862, to be paid to DBNHS in hvo payments of $1,259,575 (90%) and $139,987 after the MPCA environmentai release
29 is provided to the City, which is anticipated later this year (See Exhibit A-Schedule); and
30
31 WHEREAS, DBNHS, will pay $3,45q000 to HRA, for payment due under the DBNHS Note; and
32
33 WHEREAS, the City Council requests the HRA to amend iYs HRA Debt Service Fund - Fund 139 budget to estabfish budget authority
34 make the remaining Federal 108 Loan payment; and
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39
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42
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WHEREAS, Public Works needs to obtain fnancing of $899,862, in addRion to the $500,000 previous recorded as a t2nsfer to HRA
which will be used to offset the cost in F225 to make total payment of $7,399, 862 to DBNHS under this Budget Amendment, and
WHEREAS, the �ce of Financial Services has prepared a"Record of Intertund Loan" agreement to accomplish the financing
of $899,862 which is attachetl as Exhibit B; and
WHEREAS, there wiil be secure assets dedicated to the Internal Borrowing FUnd - Fund 070 to support �epayment of principal and
interest to the funds advancing the use of cash, and
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45 WHEREAS, the temporaryfnancing provided by the Intemal Borrowing Fund - Fund 070 will be repaid by Public Works through
46 the Right of W ay MaiMenance Pnnd - Fund 225 over the nexifour and a half years; and
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48 WHEREAS, the detaiis of the advances from the Intemal Borrowing Fund - Fund 070 and repayment are set forth in the
49 Record of Interfund Loan (see 6chibit B); and
50
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51 NOW THEREFORE BE IT RESOLVED, the Ciry Council approves the use of the Intemai Borrowing Fund - Fund 070 and cash on hand
52 and authorizes the Ciryto reimburse DBNHS for remediation costs incurred in Mro payments as described above, and
53
CouncilFYe #
Green Sheet#
aeso�unoN
CITY OF SAINT PAUL, MINNESOTA
Presented By:
Referted To:
Committee: �ate
09-1246
3086097
5q Pa9e 2 of 2
55 BE IT FUR7HER RESOLVED, the Ciy Council requests that the HRA Board amend the 2009 HRA Budget
56 to pay off the balance of $3,450,000 plus interest of the Federal '108 Loan (Railroad island Project); and
57
58 BE IT FURTHER RESOLVED, that the proposal set forth in this resolution is approved and the Direc[or of Flnancial Services
59 and the Director of Public Works shall execu[e the Record of Interfund Loan to memorialize Me VansacGon in Fxhibit B; and
so
61 BE IT FURTHER RESOLVED, Nat the Fnancial Services Director and the Treasurer vrill use the cash from the City pool as
62 allowed by law, to provide secure financing for the transactions and assure the iMerest is paid and properly cred'Red; and
63
64
65 THERE�ORE, the Ma}ror pursuaM N Sec. 10,07.Oi oFthe City Charter, cer6fies that $902,674 is available for appropriatlon
66 in the 2009 budget and recommends the following changes to fhe 2009 budget.
67
gg CurtentButlget Change Budget
69 FINANCING PLAN:
70 225 Rightof-Way Mafntenance Fund .
77 42310-6928 - Recoverable Advance 0 899,862 899,562
72 All Ofher Financing the Same 28,557,254 0 28,557,254
73 TotalACtivityBudget 28,557,254 899,862 29,457,116
74
75 SPENDING PLAN:
76 225 RigM-0f-Way Maintena�ce Fund
77 42310-0299- Miscellaneous Services
78 4231 o-0269 - O[her Insu2nce
79 42310-0619 - Irrterest Ezpense
80 All O}her Spending ihe Same
81 Total Activity Budget
82
&? FINANCING PLAN:
84 070 - Intemal Borrowing Fund
&5 10306-6928 -Advance From City Cash Pool
86 1030G6604 - Interest on Advance
87 Totaf Acfivity Budget
88
89 SPENDING PLAM:
90 070 - Intemal Borzovring Fund
91 10306-0535 - Advance to Other Funtls
92 10306-0619 - Interest Expense
93 Total Activity Budget
Adopted by Council: Date ��j(l�t�� �
Adoption Certified by Coun T Secretary:
By.
Approved bk�yor Date � �
A .J
sy. C�d'/l�
� 0 899,862 899,862
4,200 (2,812) 1,388
0 2.872 2,512
28,553,054 0 25,553,054
25,557254 899,862 29.457,116
0 899.862 899,862
0 2.812 2,812.00
0 902,674 902,674
0 899,862 89.9,862
0 2,812 2,812.00
0 902,674 902,674
Requested by Department of:
Public W s
BY
Approval Re me i e o o� i Servi .
By:
Form Approved by City Attomey.
By: �'7/���iY/� ��
Approv�rfo ubmissionto uncil:
� � �'.
09-1246
Green Sheet Green Sheet Green Sheet Green Sheet Green Sfieet Green Sheet �
� DepartrnentlOffice/Council: Date Initiated: �
� PW_PublicWorks i 2,o�T2oag i Green Sheet NO: 3086097
, ContaM Person 8 Phone: { �
� BNCe B8@S@ �
266-6099 �
Assign
' Must Be on Council A enda by (Date): � Number
� 04NOV-09 � �� ; For
, Routing
!DoaType:RESOLUTIONW/$ � ��w
j TR.4N SACTI O N j
E-Document Required: Y I I
Document CoMact: Larry Michalitsch �
ContactPhone: 266-6065 I �
Total # of Signatur Pag �_ (Clip All Lo f Sign
Action Requested:
0 PublicWorkv �, D¢Dar�eo[Accoantanf � ✓ i
I PubHC Works ' Deoar/mentDirector �, %D��i�
."---`° °--`-- , i ,..r-- ^`---`-' °--`--��
2
3
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Establish an intemal loan agreement between the City's internal Bonowing Fund and Righ[-of-Way Mtc Fund, amend the 2009
budget for this loan and to pay Dayton's Bluff Neighborhood Housing Service (DBNHS) for remediation costs at the former ciry
dump site at Rivoli bluff, and request the HRA Boazd to amend the 2009 HRA budget to pay off the federal 108 loan for the Railroad
Island Project.
Recommendations: Approve (A) or Reject (R):
Planning Commission
CIB Committee
Civi1 Service Commission
Personal Service Contracts Must Answer the Foilowing questions:
1. Has this person/firm ever worked under a contract for this department?
Yes No
2. Has this personlfirm ever been a city empbyee?
Yes No
3. Does this persoNfirtn possess a skill not normally possessed by any
current city employee?
Yes No
Explain all yes answers on separete sheet and attach to green sheet.
Initiating Problem, Issues, Opportunity (Who, Whak when, Where, Why):
DBNHS needs to be reimbursed by the City for remediation costs a[ the fomier city dump site at Rivoli bluff and the federal 1081oan
fox the Raikoad Island projeet needs to be paid off.
Advantages If Approved:
The 2009 budget will be amended to allow payment to DBNHS for remediation costs at the former City dump site at Rivoli bluff and
the HRA Board will be requested to amend the 2009 HRA budget to pay offthe federal 1081oan for the Raiiroad Island Project.
DisadvanWges If Approved:
None
Disadvantages If Not Approved:
Inability to pay DBNHS for remediation costs incurred at the former City dump site at Rivoli bluff and inability to pay off the federal
1081oan for the Railroad Island Project.
Total Amount of $899 g62.00
Transaction:
Funding Source: 225
Financial I�formation:
(Explain)
CostlRevenue Budgeted:
Activity Number: 42310
October 28, 2009 8:33 AM Page 1
09-1246
E�ibit A - Schedule
Schedule for paying for costs related to former city dump site
and repaying the outstanding balance of the Federal 108 Loan
{Railroad Island Project)
Parties involved PED, PW, OFS and DBNHS. Agreement has been reached on how costs
related to the former city dump site of $7,399,862 is funded ($SOOK from PW F 225 and
Intemal Loan to PW o£ $899,862, which will be repaid by PW from F 225 over S years
beginning in 2010).
City Budget Amendment is needed to reimburse DBNHS directiy for costs caused by the
former City dump site and its impact to the development of the adjacent HRA Railroad
Island Rivoli Bluff housing site. HRA Budget Amendment is needed for F 139 to repay
the balance of Federal 108 Loan and amend HRA(DBNHS development contract.
After MPCA Environmental release, which is anticipated later this fa11, the remaining
$3,450,000 of principal plus interest under the Federal 108 Loan (Railroad Island Project)
will be repaid.
Schedule- Next Steps
October 2$ bv 3:OQPM - PW will draft City Council Budget resolutlon for cash of
$500,000 from F 225 Right of Way Maintenance Fund and Internai Loan of $899,862
from F070 which will be reviewed by Lori Lee. PW will process green sheet and get to
City Council. Potential co-sponsors are Dave Thune and Kathy Lantry.
November 4 at 5:30 PM at Citv Council Resolution- Public HearinQ - PW and PED
are staff for City Budget Amendment for $1,399,862 to reimburse DBNHS.
November 11 at 2:00 PM - HRA Budeet Amendment fot F139 HRA Debt Service
Fund to pay 108 Loan back $3,450,000 pius interest later this year and amend Railroad
Island Contract with DBNHS.
November 15 City pays DBNHS $1,254,875 for costs associated with City dump site
based upan approved invoices (PW Larry Michalitsch and Lori Lee, OFS) with the
balance of $139,987 upon MPCA environmental release provided to the City. HRA pays
any other monies currently due DBNHS under Railroad Isiand Housing Contract.
November 30 HRA and DBNHS amend HRA contract and note and DBNHS pays
$1,250,000 to HRA for the Federal 108 Loan with balance of $2,200,000 due within ten
days of MPCA release.
09-1246
AFTER MPCA ENVIRONMENTAL RELEASE (anticipated Iater this fail)
With in 10 days of MPCA Environmentai Reiease, DBNHS wire $2,20Q,000 to fTRA
[PED] to repay the balance of the Federal 10& Loan.
Jerry Falksen of PED contacts FItII) of a two week notice to payoff Raikoad Isiand
Federa1108 Variable Rate Note.
F�RA [PED] from F I39 pays the Fed's rivstee the balance of $3,45�,000 plus interest oa
tke 208 Loan (Raikoad Island Pzoject)
City Budget Atnendment for Nov 4, 2009
Interual Loan Agreement
09-1246
E�;�: 1: :�
RECORD OF INTERFUND LOAN
(Rivoli Bluff Project)
This Record of Interfund Loan is executed by the City of Saint Paul's Director, Office of
Financial Services, and the Duector of Public Works, to memorialize an interfitud loan and its
terms.
WHEREAS, the City wlshes to asist Public Works with funds to pay for costs associated
with the former City dump site at Rivali Bluff; and
WHEREAS, it has been agreed that the City execute a five yeaz interfund ]oan as part of
the City budget resolution approved on November 4, 2009 in CF-09-�x. The advance, until
repaid, will bear interest at the City treasury portfolio investment rate ("Pool Rate"). This
advance from the Internal Borrowing Fund - Fund 070 is to be repaid from the Right of Way
Maintenance Fund — Fund 225; and
NOW, THEREFORE, THE OFFICE AND DEPARTMENT memorialize the interfund
loan as follows:
1. Authority. T'his document was authorized by, and carries out, resolution CF 09-
� adopted by the City Council on November 4, 2009.
2. Advances. Fund 070 will advance $899,862 to pay for cost associated with the
former City Dump site at Rivoli Bluff.
3. Interest. Interest will accrue on the advance at the City treasury portfolio
investment rate ("Pool Rate").
4. Repavrnent bv Public Works. The Deparhnent of Public Works will reimburse
the advance including acerued interest from Right of Way Maintenance Fund— Fund 225. The
loan will commence on or before December 1, 2009. Beginning in 2010, the Departrnent of
Public Works will annually budget for and pay on or before July 1 of each year, principal
payments in the following amounts plus interest accrued to that date. The maturity date of the
internal loan is 7uly 1, 2014.
Date Minimum Payment Amount to Fund 070
July i, 2010 $166,971 plus accrued "anterest at the Pool Rate
July 1, 2011 $183,223 plus accrued interest at the Pool Rate
July 1, 2012 $183,223 plus accrued interest at the Pool Rate
July 1, 2013 $183,223 plus accrued interest at the Pool Rate
July l, 2014 $183,222 plus accrued interest at the Pool Rate
iassss6�i
09-1246
5. Purpose. The purpose of this document is to memorialize the interfiuid loan from
Fund 070 to the Department of PubTic Works, and to serve as guidance in coordinating actions of
the City and its Office of Financial Services and its Department of Public Works with respect to
this advance.
Signed tius _ day of , 200�
Margazet Kelly
. Director, Office of Financial Services
Bruce Beese
Director, Department of Public Works
1435536vI 2