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HomeMy WebLinkAboutAgenda Packets - 2026/01/05 (2)CITY OF MOUNDS VIEW CITY COUNCIL WORK SESSION AGENDA MOUNDS VIEW CITY HALL Monday, January 5, 2026 6:00 p.m. ROLL CALL: Lindstrom, Gunn, Meehlhause, Clark, Smith Council Work Sessions are informal gatherings of the Council at which no final decisions are made, rather consensus discussion to direct Staff on Council decision items. AGENDA ITEMS DISCUSSED BY CONSENSUS 1. Peter Leatherman — Morris Leatherman — Community Survey 2. Review Rental License Language & Rate Report - Jeremiah 3. Ardan Park Wetland Banking Project - Don 4. Continued Discussion on LAHA Money/CEE — Mobile Home Program - Brian/Nyle 5. Community Engagement Committee — Review/Discussion 6. Council Committee/Commission appointments 7. Set date/time for Closed Session PUBLIC COMMENT Citizens may speak to issues not on tonight's agenda. Before speaking, please give your name and address for the minutes. Also, please limit your comments to three minutes. As a reminder, public comment is for addressing the Council only. Comments or concerns regarding Staff must be submitted in writing to the Mayor or City Administrator. Failure to respect these guidelines will result in me asking you to cease commenting and asking you to return to your seat. That said, is there anyone here for public comment? NEXT COUNCIL WORK SESSION: Monday, February 2, 2026 at 6:00 pm NEXT COUNCIL MEETING: Monday, January 12, 2026 at 6:00 pm THIS PAGE LEFT BLANK INTENTIONALLY • •� 0 1 City of Mounds View Staff R Item No: 02 Meeting Date: January 5, 2026 Type of Business: WK City Administrator Review: To: Honorable Mayor and City Council From: Jeremiah Anderson, Housing/Code Enforcement Inspector Item Title/Subject: Review Rental License Language and Rates Introduction: Chapter 119 of the Mounds View City Code regulates the operation of rental dwellings in the City. Section 119.020 states that no person shall allow to be occupied any rental dwelling unit unless the owner has first obtained a rental dwelling license. The rental license fee is a formula based on the building and number of rental dwelling units. There are other requirements for rental dwellings and certain exceptions to requirements that staff will elaborate upon in this report Discussion: The City of Mounds View has required a license to operate a rental property since the 1970's. The license requirement was first enacted to regulate multiple dwelling type rental properties with 4 or more dwelling units. Over the years the license requirement was extended to duplex properties. In 2006 an Ordinance was enacted that requires a rental dwelling license be obtained for non -owner occupied rented single-family homes. Non -owner -occupied rental homes occupied by the owners' children or parents do not require a license. Staff had identified approximately 20 single family rental properties at that time. Through a shift in housing market trends and other factors over the last 17 years, the number of single-family rental licenses in Mounds View has increased from 20 to 123. Mounds View Rental Dwellings by the numbers Where are the rental dwellings located? ® Single Family # of Single Family Detached Homes that are licensed Rentals Source: Mounds View Community Development 12-2025 ® Duplex # of Licensed Rental Buildings that have 2 dwelling units under one roof Hybrid # of Hybrid Licensed Buildings that have between 3 and 11 dwelling units under one roof Apartment Bldg # of Traditional style multi level buildings with 12 or more Dwelling Units under one roof Infographic #1 shows what type of buildings rental dwellings are located in the City of Mounds View. Take aways from this are: 46% are single-family rental properties, 18% duplex, 16% Hybrid, and 20% are in Apartment Buildings. Additionally, comparing single family and apartment building locations nearly 70% are single-family whereas 30% are apartment buildings The Mounds View Vision A Thriving Desirable Community Mounds View Rental Dwellings by the numbers Where are the rental dwellings located? Source: Mounds View Community Development 12-2025 Single Family & ®Duplex Homes # of Licensed Single Family Detached AND attached duplex buildings Hybrid & Apartment Bldgs # of Hybrid Licensed Rental Bldgs with 3-11 dwelling units under one roof AND # of Licensed multi level Apartment buildings with 12 or more dwelling units under one roof By further extrapolating the data and grouping single family and duplex locations together and comparing with the hybrid and apartment locations the pie chart shows 174 locations as compared to 98 Hybrid and Apartment building Rental locations. There are 64% single family and duplex rental locations and 36% Hybrid and Apartment Buildings. The next analysis includes a discussion of rental license fees and fees paid by type of rental. The last rental license fee increase occurred in 2020 when single family home license fees increased from $60 per year to the current rate of $100. Staff surveyed similar and surrounding Cities to obtain rental license fee information and has attached a matrix showing the license fees for additional helpful information. (Attachment #1) Mounds View Rental Dwellings by the numbers Where Rental License Fees Come From i Source: Mounds View Community Development 12-2025 Single Family Total license fees paid by Single Family Detached Homes that are licensed Rentals Duplex 0 Total license fees paid by licensed 2 dwellings under one roof Hybrid Total license fees paid by Hybrid Licensed Buildings that have between 3 and 11 dwelling units under one roof Apartment Bldg Total license fees paid by Traditional style multi level buildings with 12 or more Dwelling Units under one roof The pie chart in infographic #3 shows the rental dwelling license fees revenue by rental property type. Apartment building license fees produce more revenue than all the other categories combined even though there are fewer apartment building structures. 1llC _11V lWi ♦ 1C VV ♦ 1J1Vll A Thriving Desirable Community The last infographic #4 extrapolates the license fee data into a similar grouping as infographic #2 with inverse results essentially showing the much higher rental license fees paid by hybrid and apartment building locations versus the license fees paid by single family rental locations. Simply put, there are more single family and duplex rental property locations in the city, yet they generate significantly less rental license fees. Mounds View Rental Dwellings by the numbers Where Rental License Fees Come From Single Family & Duplex Homes Total license fees paid by single family detached AND $19,400 2 dwellings under one roof homes Hybrid & - . Apartment Bldgs $ 54,625 Total license fees paid by Hybrid Rental Bldgs with 3-11 dwelling units under one roof AND multi level Apartment buildings with 12 or more dwelling units under one roof Source: Mounds View Community Development 12-2025 License fees established in the 2026 fee schedule are $100 per building and $25 per unit. Mounds View City code 119.026 states the Rental Dwelling license is 12 months and expires on December 31St of each year, and 119.021 states the renewal application must be filled out with the Community Development Department 30 days prior to the effective date for license renewals. Current practice by the Community Development Department is to email the rental license renewals in November to satisfy the 30-days requirement. As such, rental property owners that wish to renew the rental dwelling license are required to complete the application 30 days prior to the expiration, and the license does not actually expire until December 31 St The Mounds View Vision A Thriving Desirable Community 2026 Fee Schedule Single Family - $100.00 Duplex w/ owner residing - $125.00 2 Unit - $150.00 3 Unit - $175.00 4 Unit - $200.00 6 Unit - $250.00 7 Unit - $275.00 8 Unit - $300.00 11 Unit - $375.00 12 Unit - $400.00 17 Unit — $525.00 18 Unit - $550.00 20 Unit - $600.00 23 Unit - $675.00 35 Unit - $975.00 40 Unit - $1100.00 60 Unit - $1600.00 83 Unit - $2175.00 91 Unit - $2375.00 98 Unit - $2550.00 120 Unit — $3100.00 128 Unit - $3300.00 As a result of the rental renewal process starting in November each year, there is some overlap with property taxes and City utility bills that has historically caused some delay in issuing renewals for rental license holders. As of December 22, 2025, 95% of the total license renewals have been received. The 5% that have not been renewed are related to unpaid City utility fees. Current City policy is to certify delinquent utilities to the property taxes. Staff is seeking direction from the council to remove the requirement that City utility fees are paid prior to renewing the Rental Dwelling license. Since this requirement is in City code any change would require an ordinance to be enacted by the Council. Based on council direction, staff changed the rental application to require property owners to include the rental rates they are currently charging. (This information was voluntary in the past). As of December 22, 2025, 12 rental license application renewals did not include rental rates information. Staff made repeated phone calls and attempts to obtain the rental rate information. Rental rate information is currently not required to be provided by City code. As such, staff is seeking direction from the Council to accept these renewals for 2026 that represent 5% of all rental licenses. If the Council wishes to mandate rental rate information Staff seeks direction for an Ordinance to amend the City code. Current rental rate information was extrapolated and provided to the City's GIS specialist to create a map showing rental rates that meet the current definition of Naturally Occurring Affordable Housing (NOAH) as defined by the Metropolitan Council. (Attachment #2) The City's planning consultant Stantec, has created a City map summarizing the data from their November 2025 Staff report and discussion regarding affordable housing. This map shows owner occupied home locations that are considered NOAH.(Attachment #3) 2026-2028 Strategic Plan Strategy/Goal: The review of rental license language and rates is consistent with the goal "Ensure housing rental program is robust, easy for landlords to understand and follow and apply to and enforce." and "Complete an in-depth review of affordable housing in Mounds View with the exclusion of Mixed Use" Financial Impact: Increasing or decreasing Rental License fees will change the current revenue shown in this report based on the 2025 fee schedule. The Mounds View Vision A Thriving Desirable Community Recommendation: 1. Staff is recommending an increase in Rental License rates for single-family and duplex rentals. 2. Additionally, staff is requesting the Council provide policy direction on enactment of an Ordinance that will eliminate the requirement City utility billing to be current prior to issuing a Rental Dwelling license as delinquent utility bills are certified to property taxes. 3. Finally, staff is requesting guidance on what to do with the "incomplete" rental applications with missing rental amounts. Respectfully submitted, Jeremiah Anderson Housing/Code Enforcement Inspector Attachments: 1. Matrix of similar and surrounding City rental license rates 2. Mounds View Map of NOAH rental locations: Assessed Value of All Residential Properties, Assessed Value of Single Residential Properties, Percentage of Single Family Residential Properties Affordable at 60% AMI, Single Family Residential Affordable to 60% AMI 3. 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CRP CRP IE R-5 I9Lii PUD PUD ° B-3 B-2 R-4 • \B-3 B-3 Nye, PUD 5— •°,. -,. a �.�i �®, � G3� ,' • ®� 25i1 2501 �0 5394 2552 -,4 B-3 g� B- PUD Nye, THIS PAGE LEFT BLANK INTENTIONALLY �1 I of Mounds View Staff R Item No: 04 Meeting Date: January 5, 2026 Type of Business: Council Discussion City Administrator Review: To: Honorable Mayor and City Council From: Brian Beeman, Assistant City Administrator, Nyle Zikmund, City Administrator Item Title/Subject: Update on LAHA Money — Mobile Home Program Introduction: The City Council has directed staff to research options to address the mobile home parks through the allocation of LAHA monies. Staff has met with the Center for Energy and Environment (CEE) and the Home Energy Squad (HES) to discuss various options, objectives of the City Council, and how their services can meet the Council's goals with the LAHA money. Additionally, staff reached out to Met Council member Peter Lindstrom to gather information on work they have done with/thru the University of Minnesota. On December 1, 2025 the City Council met in a worksession to discuss the initial findings from staff and CEE's discussion. Staff also met with the City of Blaine to better understand their mobile home park programs. CEE is working with other cities in the LAHA allocations as it relates to mobile home parks. Discussion: CEE has prepared DRAFT documents necessary to implement this program in a partnership between the City of Mounds View and CEE. The City Council to review and discuss the agreements and recommend any changes and/or recommendations before staff brings forward the agreements at a future City Council meeting for consideration. Please keep in mind that these are rough drafts which will need to be reviewed by CEE's legal counsel before any signatures. Budget considerations also need to be discussed since the LAHA money can't be used for administrative costs etc. The Council to determine how the program should be set up: grants/loans/low interest loans/existing City loans/deferred loans -no monthly payments and forgiven after 10 years. CEE can generate a priority inspection list once it is determined if the Council would like to proceed. CEE will take care of the bids, loan/grant administration, title work until loans are forgiven, etc. Example, Blaine who contracts with CEE on average utilizes about $15,000-$20,000 per mobile home and then the loan is forgiven after 10 years. CEE recommends $10,000 per mobile home for Mounds View. Champlain who also contracts with CEE uses a grant system instead of a loan program. And Roseville is in the research phase with CEE to administer their LAHA funds program. Strategic Plan Strategy/Goal: A progressive city that is welcoming and desirable destination to all ages and cultures, who seek progress through partnership, and a place where residents can live, work and play safely and show pride in the community. Financial Impact: None Recommendation: The City Council to hear an update from staff on their research of CEE and its programs, review the DRAFT agreements, and offer any suggestions, updates, etc. Staff is recommending council set an amount per year ($100,000 for example), set maximum grant amount (staff recommending $10,000), lottery format be used (residents apply during application period and we draw 20 names in order and start with the first 5) set AMI at 60%, finalize if residents must stay in home for X number of years (this will be difficult to enforce) but all upgrades will be permanent changes to the home; thus the goal of upgrading the home to remain livable and affordable occurs. Respectfully submitted, Brian Beeman Assistant City Administrator Attachment(s): 1. Amendment 7 (DRAFT) 2. Exhibit A7 Guidelines (DRAFT) 3. Exhibit B4 (FINAL) 2021 The Mounds View Vision A Thriving Desirable Community AMENDMENT 7 to the LOAN ORIGINATION AGREEMENT Between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF MOUNDS VIEW And CENTER FOR ENERGY AND ENVIRONMENT City of Mounds View Home Improvement Loan Program The Agreement made the 1 st day of January, 2018 by and between the Economic Development Authority in and for the CITY OF MOUNDS VIEW, with offices at 2401 Mounds View Blvd, Mounds View, MN 55112, (the "Authority"), and CENTER FOR ENERGY AND ENVIRONMENT, with its offices at 212 3rd Avenue North, Suite 560, Minneapolis, Minnesota 55401 ("CEE") is hereby amended. 1. Services/Scope of Work of the agreement shall read: 1.1 CEE shall, as directed by the Authority, develop and deliver the City of Mounds View Loan Programs (hereinafter the "Program") which are more fully described in Exhibit A6, attached hereto. All activities delivered under the Program shall be coordinated with the Authority's designated representative, who shall be the Finance Director or the Assistant City Administrator. 2. Compensation of the agreement shall read: 2.1 The Authority shall compensate CEE for services provided under this Agreement according to the following schedule and more fully described in Exhibit B6 attached hereto: Loan Origination Fee for all Residential Loans $775 LAHA Grant Origination Fee $600 Annual Administration Fee $5,000 Post Installation Inspection Fee $175 One Time LAHA Grant Set Up Fee $1,000 The Annual Administration Fee shall be payable on January I't of each year the contract is active. 5. Term and Termination of the agreement shall read: 5.1 Unless earlier terminated as provided in the following paragraphs, this Agreement shall become effective on January 1, 2026 and continue through December 31, 2026. All other sections of the contract shall remain as written in the original and amended agreements. IN WITNESS WHEREOF, the parties hereunder set their hands as of the date written below: ECONOMIC DEVELOPMENT AUTHORITY of MOUNDS VIEW By Gary Meehlhause, President Date By Nyle Zikmund, Executive Director Date CENTER FOR ENERGY AND ENVIRONMENT Im Stephanie Haddad, COO Date TAX ID 41-1647799 EXHIBIT A7 PROGRAM GUIDELINES Exhibit A7 Page 1 Agreement between the City of Mounds View and Center for Energy and Environment MOUNDS VIEW LOAN PROGRAM GUIDELINES The City of Mounds View EDA is making funds available for homeowners to make improvements to their properties. The Mounds View Loan Program is designed to supplement existing loan programs available from MHFA, CEE, private lenders and other housing resources. This program is not intended to be the sole source of improvement funds available to the City. Center for Energy and Environment shall serve as the administrator for the Mounds View Loan Program and will secure the most beneficial financing based on the borrower's needs independent of the funding source. Residential Home Improvement Loan Program Interest Rate: 3% for households with income less than or equal to 80% of HUD Area Median Income 4% for households with income greater than 80% of HUD Area Median Income ***Income shall be determined by projected income for the next year and is based on household size. Amortization Type: Amortizing (Monthly Payments Required) Loan Amount: Minimum of $2,000 and Maximum of $15,000. Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the size of the loan and the borrower's ability to repay the loan. The minimum term is 1 year; the maximum term will be 10 years. Eligible Properties: 1-4 unit owner -occupied properties located within the geographical boundaries of the City of Mounds View. Townhomes and Condominiums are eligible. Ineligible Properties: Dwellings with more than four units, cooperatives, manufactured homes and properties used for commercial purposes. Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social security number, Including: U.S. Citizens, Permanent Resident Aliens, Non -Permanent Resident Aliens. TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE. Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non -Occupant Co -Borrowers, and Properties held in the name of a business. Ownership/Occupancy: Owner- occupied only. Exhibit A7 Page 2 Agreement between the City of Mounds View and Center for Energy and Environment Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should not exceed 110% of the property value. Half of the improvement value may be added to the initial property value. Income Limit: There is no maximum income limit Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt to income ratio in excess of 50% will be ineligible to receive financing. Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments history in the past 12 month period (without reasonable explanation) 2) All real estate taxes must be current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at least 18 months prior to loan closing. 5) The redemption period on prior foreclosures must have occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60-day late payments on credit report. Any 60 day late requires a documented explanation and reasonable reasons; medical, unemployment, divorce. 7) No defaulted government loans. Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding balance(s) cannot exceed $15,000. Eligible Use of Funds: Loans may be used to finance most interior and exterior improvements that improve the basic livability of the property. Garages, decks, porches, retaining walls, landscaping and fences can be repaired, replaced or built as new construction. Contractors must be properly licensed and permits must be obtained when required. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non -permanent appliances (unless part of a full kitchen remodel), and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bids: Only 1 bid is required. All contractors must be properly licensed. Sweat Equity / Homeowner Labor: Work maybe performed by property owners on a "sweat equity" basis. Loan funds may be used only for the purchase of materials. Loan funds may be used to rent tools/equipment. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured with a mortgage in favor of the City of Mounds View EDA. Borrower Fees: Borrower will be responsible for all applicable mortgage filing fees, title, flood certificate, credit report and any other fees associated with the loan. All fees may be financed in the loan. Exhibit A7 Page 3 Agreement between the City of Mounds View and Center for Energy and Environment Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE's underwriting guidelines. CEE's decision shall be final. Appeals can be made to the City of Mounds View. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. Residential Mobile Improvement Loan Program Interest Rate: 3% for households with income less than or equal to 80% of HUD Area Median Income 4% for households with income greater than 80% of HUD Area Median Income ***Income shall be determined by projected income for the next 12 months and is based on household size. Amortization Type: Amortizing. (Monthly Payments Required) Loan Amount: Minimum of $2,000 and Maximum of $10,000. Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the size of the loan and the borrower's ability to repay the loan. The minimum term is 1 year; the maximum term will be 7 years. Eligible Properties: Residential mobile homes located within the geographical boundaries of the City of Mounds View. Ineligible Properties: Non owner -occupied , cooperatives, time shares, properties held in the name of a trust and properties used for commercial purposes. Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social security number, Including: U.S. Citizens, Permanent Resident Aliens, Non -Permanent Resident Aliens. TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE. Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non -Occupant Co -Borrowers, and Properties held in the name of a trust or business. Ownership/Occupancy: Owner- occupied only. Loan - to - Value Ratio: Not applicable Income Limit: There is no maximum income limit. Exhibit A7 Page 4 Agreement between the City of Mounds View and Center for Energy and Environment Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt to income ratio in excess of 50% will be ineligible to receive financing. Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments history in the past 12 month period (without reasonable explanation) 2) All real estate taxes must be current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at least 18 months prior to loan closing. 5) The redemption period on prior foreclosures must have occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60-day late payments on credit report. Any 60 day late requires a documented explanation and reasonable reasons; medical, unemployment, divorce. 7) No defaulted government loans. Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding balance(s) cannot exceed $10,000. Eligible Use of Funds: Loans may be used to finance most interior and exterior improvements that improve the basic livability of the property. Garages, decks, porches, retaining walls, landscaping and fences can be repaired, replaced or built as new construction. Contractors must be properly licensed and permits must be obtained when required. Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non -permanent appliances (unless part of a full kitchen remodel), and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT allowed. Bids: Only 1 bid is required. All contractors must be properly licensed. Sweat Equity / Homeowner Labor: Work maybe performed by property owners on a "sweat equity" basis. Loan funds may be used only for the purchase of materials. Loan funds may be used to rent tools/ equipment. Post Installation Inspection: Permits must be obtained and signed off by a City inspector where required; when not required, a post installation inspection will be performed by CEE to ensure the work has been completed before any funds will be released. Loan Security: All loans will be secured by a lien in favor of the City of Mounds View EDA. Borrower Fees: Borrower will be responsible for all applicable mortgage filing fees, title, flood certificate, credit report and any other fees associated with the loan. All fees may be financed in the loan amount. Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans based on a credit report, income verification and other criteria as deemed necessary through CEE's underwriting guidelines. CEE's decision shall be final. Appeals can be made to the City of Mounds View. Work Completion: All work must be completed within 120 days of the loan closing. However, when warranted, CEE may authorize exceptions on a case by case basis. Exhibit A7 Page 5 Agreement between the City of Mounds View and Center for Energy and Environment LAHA Grant Program Eligible Proiect Expenses will be determined by a Home Energy Squad Visit. Improvements include, but are not limited to: • Insulation • Heating and Air Conditioning Replacement • Plumbing work needed to address leaks • Underbelly repair as needed Ineligible Proiect Expenses: • Projects NOT listed as an Eligible Project Expense • Must not be part of an Insurance Claim Minimum Proiect Size: Eligible Project Expenses must total at least $1,000 to qualify for a grant. (;rant Amnnnt- • Up to $10,000 Multiple Grants: NOT permitted. Only one Grant per property Eligible Properties: Owner -occupied Mobile Homes located in the City of Mounds View Properties held in a Trust and properties may be held in a Contract for Deed. Ineligible Properties: Properties that are not a mobile home and non -owner occupied properties. Eligible Recipients: All recipients must own and occupy the property and be a legal resident. Ineligible Recipients: Including but not limited to: Businesses, Non -Occupant Co -Borrowers and non -legal residents of the United States. Income Limit: The property owner's household income shall not exceed 80% AMI Income will be determined by the adjusted gross income on the most recent Federal Tax Return. If a tax return is not required, income will be determined by the projected gross income for the upcoming 12 months. Credit Requirements: 1) All mortgage payments must be current, 2) All real estate taxes must be current 3) No defaulted government loans, tax liens or child support Exhibit A7 Page 6 Agreement between the City of Mounds View and Center for Energy and Environment Bids: Only one 1 estimate is required. Allcontractors must be properly licensed or registered. Sweat Equity / Homeowner Labor: Work may be performed by property owners on a "sweat equity" basis, but only the purchase of materials and rental of tools or equipment will be considered an EligibleProject Expense. Recipient Paid Fees: None Deadline for Work Completion: All work must be completed within 120 days of the grant closing. Extensions may be granted by CEE due to weather or similar factors. General Program Conditions Application Processing: Loans and Grants will be distributed on a first come first serve basis as applicants qualify. Applicants must provide a completed application package including the following in order to be considered for funding. ➢ Completed and signed application form ➢ Proof of income ➢ Bids or estimates for proposed projects ➢ Other miscellaneous documents CEE may require Contractors/Permits: Contractors must be properly licensed. Permits must be obtained when required by City ordinance. Program Costs: Loan origination, post installation inspection and remodeling advisor visit fees will be paid per the Program Budget. Loan program marketing efforts will be billed directly to the City of Mounds View EDA and is a separate expense should the City of Mounds View EDA choose to commission CEE for marketing support. Borrowers will pay all mortgage filing fees and related closing costs. Total Proiect Cost: It is the borrower's responsibility to obtain the amount of funds necessary to finance the entire cost of the work. In the event the final cost exceeds the original loan or grant amount, the borrower must obtain the additional funds and show verification of the additional funds in order to be approved for the loan. Disbursement Process: Payment to the contractor (or owner in sweat equity situations) will be made upon completion of work. An inspection will be performed by a City Inspector and/or CEE to verify the completion of the work. The following items must be received prior to final disbursement of funds: • Final invoice or proposal from contractor (or materials list from supplier); • Final inspection verification by a City Inspector (or CEE); • Completion certificate(s) signed by borrower and contractor; • Lien waiver for entire cost of work; and • Evidence of City permit (if required). Exhibit A7 Page 7 Agreement between the City of Mounds View and Center for Energy and Environment EXHIBIT B7 TOTAL PROGRAM BUDGET $250,000 MOUNDS VIEW LOAN PROGRAM BUDGET A. Loan Program Budget Allocation for the Residential Home Improvement and Mobile Home Improvement Loan Programs and All Administrative Fees: $60,000 B. LAHA Grant Budget Allocation (does NOT include any Administrative Fees: $190,000 Budget Notes: 1. Funds to be transferred between Budget Categories in this Exhibit that do not change the Total Contract Amount must be approved in writing by the City of Mounds View EDA. 2. CEE shall submit monthly invoices to the City of Mounds View EDA for the loan principal and administrative fees and quarterly invoices for the aged delinquency reporting services. 3. Services performed by CEE will initially be funded from the Total Program Budget as stated above and paid in accordance with the following schedule. (a) Loan Origination Fee for all Residential Loans $775 per loan closed (b) LAHA Grant Origination Fee $600 (c) Post Installation Inspection $175.00 per inspection (d) Annual Administration Fee $5,000 (e) One Time LAHA Grant Set Up Fee $1,000 The Annual Administration Fee is payable on January 15Y of each year the contract is active. 4. Marketing Marketing efforts will be supported by CEE and marketing costs are not included in the administrative budget. Hourly rates are inclusive of all overhead expenses and will be charged only for hours directly related to the labor of all program marketing. CEE will also be reimbursed by the City of Mounds View EDA for any non -labor, out-of-pocket expenses relating to these services on a dollar -for -dollar basis. Exhibit B7 Page 1 Agreement between the City of Mounds View EDA and Center for Energy and Environment MOUNDS�VIEw of Mounds View Staff R, Item No: 5 Meeting Date: January 5, 2026 Type of Business: Workshop City Administrator Review: To: Honorable Mayor and City Council From: Nyle Zikmund, City Administrator Item Title/Subject: CEC Introduction: The Community Engagement Committee (CEC) was established by Council in an effort to further connect/reach out/address — all members of the community; and specifically the continued growth of diversity. The effort dates back to Mayor Mueller and Council Member Bergeron's time and the Human Rights Commission. Background: The committee struggled in their initial efforts but achieved a substantive level of success in laying the groundwork for the Discharge or Discriminatory Covenants. That effort is ongoing with over 50% of our covenants now discharged, with other communities here in Minnesota and across the nation using Mapping Prejudice to assist in the work. Additionally, Mayor Lindstrom was able to recruit new members and co-chairs Shauna Bock and Andre Koen to re -energize the effort and council appropriated $2,000 in budget allocations. They have held two successful Community Meals, sought feedback throughout the community, and assisted in other events such as the Tribute Park Dedication, Tree Lighting, etc. Discussion: Since its original inception, we have had three new council members; Clark, Smith and Lindstrom and not discussed the mission and purpose in work session. This provides the "new" council to have discussion regarding their activity, purpose, and continued operations. NOTE — the 2026 budget included the $2,000 for operations. Strategic Plan Strategy/Goal: A progressive city that is welcoming and desirable destination to all ages and cultures, who seek progress through partnership, and a place where residents can live, work and play safely and show pride in the community. Financial Impact: $2,000 budget Recommendation: Council Discretion. The Mounds View Vision A Thriving Desirable Community Respectfully submitted, Nyle Zikmund City Administrator The Mounds View Vision A Thriving Desirable Community MOUNDS�VIEw of Mounds View Staff R, Item No: 6 Meeting Date: January 5, 2026 Type of Business: Workshop City Administrator Review: To: Honorable Mayor and City Council From: Nyle Zikmund, City Administrator Item Title/Subject: Committee Commission Assignments Introduction: Annual determination of various committee/commission appointments. . Background: City has numerous committee/commission/organization assignments. Discussion: Included in the packet is the complete list of all appointments. Strategic Plan Strategy/Goal: A progressive city that is welcoming and desirable destination to all ages and cultures, who seek progress through partnership, and a place where residents can live, work and play safely and show pride in the community. Financial Impact: None Recommendation: Council Discretion — determine whom is appointed. Respectfully submitted, Nyle Zikmund City Administrator The Mounds View Vision A Thriving Desirable Community