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remaining funds that are insufficient to acquire and rehab another housing unit or use for other program related expenses will lose use of those funds. In staff's opinion, a fair and reasonable use of the remaining funds is to provide compensation to the consultant for the significant amount of additional work not anticipated within or provided for in the 2009 contract for services. That additional work, as outlined on pages 24 and 25 of the proposed amended contract, includes 275 additional hours of consultant time related to the acquisition, rehabilitation, and re -sale and/or lease of twelve (12) properties acquired with PI funds. Specific tasks completed for each of the properties included: preparing environmental reviews, maintaining acquisition, rehabilitation, and re- sale records, reviewing contractor payment requests, assisting with paperwork for rehabilitation and resale of nine (9) of the twelve properties, reviewing tenant eligibility and conducting annual inspections of three (3) properties, and incorporating additional properties into monthly reports submitted to DEO. These additional activities were completed over multiple years, with Fred Fox Enterprises, Inc. coordinating with DEO on technical questions and working with the County and DEO to address changes to NSP PI rules and procedures. While the proposed contract changes will increase payment to Fred Fox Enterprises, Inc., the proposed payment as a percentage of the actual amount of grant funds received is less than the percentage originally negotiated with Fred Fox Enterprises, Inc. The original grant administration services contract had a negotiated cost of $200,000, or 4.3% of the original $4,680,825 grant amount. As allowed by the CDBG NSP, administration costs can be as high as 6.8% of the grant amount. The proposed additional $35,000 allocation to Fred Fox Enterprises, Inc. for grant administration services represents approximately 2.1% of the $1,695,639.41 in unanticipated Program Income funds received and used by the County. When the total NSP1 funds ($6,376,464.41) and the proposed amended amount of total compensation to the consultant ($235,000) are considered, the overall percent of NSP1 funds used for grant administration costs payable to Fred Fox Enterprises, Inc. will be 3.7%. That figure (3.7%) is less than the originally negotiated percentage (4.3%) and is significantly less than the 6.8% maximum percentage the NSP1 program allows for administration services. As structured, the proposed $235,000 contract allows the grant administrator to immediately invoice the county and receive payment for the additional $35,000 in program income related grant administration activities already performed. While providing for this payment, the contract also requires the County to retain the remaining contract balance of up to $50,000 until the grant administrator successfully completes close-out of the grant with DEO. The exact amount of the final payment may be less than $50,000 depending upon the remaining NSP1 fund balance at close-out. The Board now needs to consider authorizing the Chairman to execute the proposed Amended Grant Administration Agreement between Indian River County and Fred Fox Enterprises, Inc. 4 143