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HomeMy WebLinkAbout91-0327 NHS RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH NEIGHBORHOOD HOUSING SERVICES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Larry L. Rice, City Manager, be and is hereby authorized and directed to execute a Purchase of Service Agreement on behalf of the City of Elgin with Neighborhood Housing Services for the administration of the Neighborhood Housing Services program, a copy of which is attached hereto and made a part hereof by reference. s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: March 27 , 1991 Adopted: March 27 , 1991 Vote: Yeas 5 Nays 0 Recorded: Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk PURCHASE OF SERVICE AGREEMENT between Neighborhood Housing Services and the City of Elgin WHEREAS, the City of Elgin is committed to the revitalization and redevelopment of certain areas within the city limits; WHEREAS, Neighborhood Housing Services of Elgin, is incorporated to provide revitalization assistance to certain areas within the city limits; WHEREAS, the City of Elgin and Neighborhood Housing Services of Elgin wish to work cooperatively to revitalize target neighborhoods as delineated by Neighborhood Housing Services. NOW, THEREFORE it is agreed by the City of Elgin and Neighborhood Housing Services that: The City of Elgin, will contribute $27,100 to the Neighborhood Housing Services during the 1991 calendar year based upon the following performance criteria: 1) For the development and incorporation of a neighborhood organization composed of residents of the Neighborhood Housing Services target neighborhood, the City of Elgin shall pay Neighborhood Housing Services the lesser of $20,600 or actual expenses related to the development of said organization. Such payment will be compensation for the following activities: monthly meetings, identification and training of neighborhood leaders, development of bylaws, investigation of tax exempt status and incorporation, membership recruitment which includes organizational newsletter, mailing/postage, development and distribution of informational materials, neighborhood development projects including: neighborhood clean-ups, park revitalization, childrens' activities, coordination of City services to maximize neighborhood involvememt and support (i.e. tree trimming, street cleaning, trash pick-up) . 2) The NHS will employ a qualified person to act as a Rehabilitation Specialist to assist in the systematic evaluation of homes within the delineated area. Said person will provide direct counselling and professional advice to residents contemplating or engaging in rehabilitation efforts. Rehab Specialist will evaluate property for rehab, prioritize work needed, counsel homeowners in bid evaluation/selection, counsel homeowners with self-help projects, cross-sell loan programs and/or NHS services, monitor workmanship of projects and subsequent payouts. The City of Elgin shall pay Neighborhood Housing Services the lesser of $6,500 or actual expenses related to the inspection and loan product marketing. Payments to be made within 30 days of billing date (quarter end), Conditioned upon the City receiving from NHS an acceptable activities report summarizing neighborhood organizational efforts, housing rehabilitation work and loan generation (Home Improvement Loan Program and Rental Rehabilitation Program) . Billing Dates: March 30, 1991 -$6,775 June 30, 1991 -$6,775 September 30, 1991 -$6,775 December 31, 1991 -$6,775 (1— " Larry L`�City Manager Edward Schock,Presi ent NHS Board NHS Draft #4 -3/20/91 Elm A Item No. March 7 , 1991 TO: Mayor and Members of the City Council FROM: Larry L. Rice, City Manager SUBJECT: Purchase of Service Agreement (PSA) with Neighborhood Housing Services (NHS) of Elgin PURPOSE The purpose of this memorandum is to forward to the Mayor and City Council a PSA with NHS. BACKGROUND In December, the City Council authorized a $27, 100 pay- ment to NHS contingent upon entering into a PSA with the City. City staff and NHS have had discussions regarding performance criteria and program accomplishments to be includ- ed in the PSA as well as possible methods of payment. The attached draft agreement amplifies the activities for which City funds will be used and provides quarterly installment payments to NHS of $6,775. FINANCIAL IMPACT The $27, 100 payment to NHS is available from City Contin- gency Funds. RECOMMENDATION The City Council may want to consider including report- ing requirements in the PSA. Such a provision would require NHS to provide the City Council with a written quarterly summary of neighborhood organizational efforts, housing reha- bilitation activities and loan. generation (home improvements and rental rehab) prior to disbursement of payments. If the City Council finds the PSA satisfactory, staff should be directed to prepare a resolution authorizing its execution for the next ing. 7 Larry . Rice,` City Manager LLR:amp Attachment PURCHASE OF SERVICE AGREEMENT between Neighborhood Housing Services and the City of Elgin WHEREAS, - the City of Elgin is committed to the revitalization and • redevelopment of certain areas within the city limits; • WHEREAS, Neighborhood Housing Services of Elgin, is incorporated to provide revitalization assistance to certain areas within the city limits; WHEREAS, the City of Elgin and Neighborhood Housing Services of Elgin wish to work cooperatively to revitalize target neighborhoods as delineated by Neighborhood Housing Services. NOW, THEREFORE it is agreed by the City of Elgin and Neighborhood Housing Services that: The City of Elgin, will contribute $27, 100 to the Neighborhood Housing Services during the 1991 calendar year based upon the following performance criteria: 1) For the development and incorporation of a neighborhood organization composed of residents of the Neighborhood Housing Services target neighborhood, the City of Elgin shall pay Neighborhood Housing Services the lesser of $20,600 or actual expenses related to the development of said organization. Such payment will be compensation for the following activities: monthly meetings, identification and training of neighborhood leaders, 47) development of bylaws, investigation of tax exempt status and incorporation, membership recruitment which includes organizational . newsletter, mailing/postage, development and distribution of informational materials, neighborhood development projects including: neighborhood clean-ups, park revitalization, children's activities, coordination of City services to maximize neighborhood involvement and support (i.e. tree trimming, street cleaning, trash 2) The NHS will employ a qualified person to act as a Rehabilitation Specialist to assist in the systematic evaluation of homes within the delineated area. Said person will provide direct counselling and professional advise to residents contemplating or engaging in rehabilitation efforts. Rehab Specialist will evaluate property for rehab, prioritize work needed, counsel homeowners in bid evaluation/selection, counsel homeowners with self-help projects, cross-sell loan programs and/or NHS services, monitor workmanship of projects and subsequent payouts. The City of Elgin shall pay Neighborhood Housing Services the lesser of $6,500 or actual expenses related to - the inspection and loan product marketing. Payments to be made within 30 days of billing date (quarter end) . Billing Dates: March 30, 1991 - $6,775 June 70, 1991 - $6,775 September 30, 1991 - $6,775 December 71, 1991 - $6,775 Larry L. Face, City Edward chock, President NHS Board .07) NHS DRAT fr7 711/91 RENTAL REHABILITATION ADMINISTRATION AGREEMENT WHEREAS, the City of Elgin has received $150,000 in grant funds from the Illinois Department of Commerce and Community Affairs for the provision of rehabilitation loans through the Rental Rehabilitation Program of the City of Elgin; WHEREAS, Neighborhood Housing Services of Elgin, a not for profit corporation, is experienced in undertaking housing rehabilitation work and is lawfully authorized to provide the services described below. WHEREAS, both the City of Elgin and Neighborhood Housing Services of Elgin wish to cooperate in the continued operation of the Rental Rehabilitation Program of the City of Elgin; NOW, THEREFORE, it is agreed by the City of Elgin and the Neighborhood Housing Services of Elgin that: The Neighborhood Housing Services of Elgin shall perform the activities of Rental Rehabilitation Program development, marketing, and outreach; process loan applications and prepare the necessary loan documents; and, manage the Rental Rehabilitation Program in Elgin. The Neighborhood Housing Services of Elgin shall administer, market, and operate the Rental Rehabilitation Program of the City of Elgin according to federal, state, and local guidelines and regulations. The City of Elgin shall provide inspection services to identify code deficiencies in structures proposed for participation in the Rental Rehabilitation Program. The City of Elgin shall provide limited overview and technical assistance to NHS to assist in the provision of proper documentation, adherence to federal, state, and local regulations, and timely payout and project completion. In consideration of the preceding administrative services commitment by the Neighborhood Housing Services of Elgin, a total of $15 ,000 (10% of total grant award) has been allocated for administrative services . The $15 ,000 shall be paid on the following basis: 1 . Upon receipt of the sum of $10 ,000 by the City of Elgin from the Department of Commerce and Community Affairs the City shall pay Neighborhood Housing Services the sum of $10,000 for services provided and to be provided for the commitment of $100 ,000 in Rental Rehabilitation loans. Rental Rehabilitation Administration Agreement Page Two 2 . The sum of $5 , 000 shall be paid by the City of Elgin to Neighborhood Housing Services in $1 ,000 increments after the commitment of $100 , 000 in Rental Rehabilitation loans. The distribution of the $5 ,000 for administrative services rendered shall be in $1 ,000 increments for each $10 ,000 in Rental Rehabilitation loan commitments, not to exceed the $5 ,000 allocated or the total of $150 ,000 in Rental Rehabilitation Grant funds allocated. .Z- 1,,.e4244,4-71000 City Elgin Neighborhood Housing Services Larry L. Rice, City Manager Edward Schock, President � n Dolonna Mecum, City Clerk