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Home My WebLink About96-17 Resolution No. 96-17 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 Richard B. Helwig, City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a purchase of service agreement on behalf of the City of Elgin with Neighborhood Housing Services to provide a housing maintenance and opinion survey, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: February 14, 1996 Adopted: February 14, 1996 Vote: Yeas 7 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk PURCHASE OF SERVICE AGREEMENT BETWEEN NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC. AND THE CITY OF ELGIN THIS AGREEMENT is made and entered into this / 777/ day of /- Erb, , 1996, by and between the City of Elgin, Illinois, a municipal corporation, (hereinafter referred to as "City" ) and Neighborhood Housing Services of Elgin, Inc. , an Illinois not-for-profit corporation (hereinafter referred to as "NHS") . WHEREAS, the City of Elgin, Illinois, a municipal corporation, (hereinafter referred to as "City" ) is committed to the revitalization and redevelopment of certain areas within the city limits; and WHEREAS, Neighborhood Housing Services of Elgin, Inc. , an Illinois not-for-profit corporation (hereinafter referred to as "NHS" ) is incorporated to provide revitalization assistance to certain areas within the city limits; and WHEREAS, City is committed to the revitalization and strengthening all neighborhoods in Elgin; and WHEREAS, City and NHS wish to work cooperatively to particularly assist older established neighborhoods throughout Elgin under stress; and WHEREAS, NHS has occupied new offices at 300/302 Douglas Avenue to establish a visible presence in a new target area. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows : 1 . NHS shall provide a current baseline housing maintenance survey within a target area commonly known as an area in Planning Area #2, a description of which is attached hereto and made a part hereof as Attachment "A" ; 2 . NHS shall develop maps depicting the aforementioned survey results; 3 . NHS shall develop and conduct a neighborhood opinion survey; 4 . NHS shall actively solicit neighborhood representation on the NHS Board of Directors; 5 . NHS shall work with and support neighborhood organizations; 6 . NHS shall designate reasonably sufficient staffing to develop newsletters, monthly meetings, membership recruitment and leadership development; 7 . City shall pay NHS a total sum of $97,300, in two payments, one of which shall be on February 28, 1996 and one of which shall be on September 1, 1996; 8 . NHS shall cooperate with resident police officers and the Department of Code Administration and Neighborhood Affairs in building safe neighborhoods; 9 . NHS shall actively seek to develop minority involvement in NHS activities and in the community; 10 . NHS shall encourage home ownership, the conversion of single-family properties to their original use, and sound property maintenance for the betterment of Elgin' s neighborhoods; 11 . NHS shall submit to City four quarterly performance reports which shall outline NHS ' neighborhood organizational efforts and accomplishments as well as housing rehabilitation work, loan production and all other NHS activities . 12 . City shall not be required to make any payment to NHS unless City has been provided with reasonable evidence of compliance with the terms of this agreement by NHS. Such evidence shall include, but not be limited to, receipts and other evidence of expenditures incurred. 13 . Unless otherwise terminated as provided herein, this agreement shall terminate December 31, 1996 . 14 . Either party hereto may terminate this agreement upon ten ( 10) days written notice. 15. The terms of this agreement shall be severable. In the event that any of the terms or provisions of this agreement are found to be void or otherwise unenforceable, the remainder of this agreement shall remain in full force and effect. CITY OF ELGIN NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC. B 1\k. B Y Y LI . 1.4.6 Richard B. Helwig Ang= =o -nthal City Manager Bo-, • President Attest: Dolonna Mecum, City Clerk -2- . City of Elgin Neighborhood Organization Directory 1 . -- Attachment A 1 USER DEFINED AREAS L-!, 1990 CENSUS 1- Lzw,:billibi,_:' \.. .,.,i1 _j 0172\ �� 017 �`� le 'Pr •,� `-�' .jr f a ► = - _ 011 :d ' i \ , . 1 , h. ' -"P.=C-4--nr::i - ' IV 4.11-7 i-i irirr,' r II.-- -: 4 . ., ._ _ . ,ii, , .. . , zrz_, A.i--, \, iCir , - ' ' ' - :L . Lo' 1 , \■'1' ,E.4....._ . , , ....„,:r01 ;s..-/;,),,, '1,ef i •M ,•• , tt�a �))Y Iw�LC- :ea :..�- ==�s � Y �'-� Cr"5`F �z rt JJ ._ �: I,L,Li_ DCGr•f" �, t_ X03-:a.� C nr,-,��+ �. NOW _ .- I ,; -14U� tt ma . 1,,i - - .,Ftr uf'-;,,::Gi , f_''j�- n-r #'�s�+� :-b• �,1 . . ��,.s - ; , I �n J�! .i--.s _ -„3,,*-,. +--- -•Y- - mots y ;`......,6 ; . c,„,L.; U \"t''''-'a ). .. . _.,�o. 0.-,c., ,„,s0, ..i,,.... r7.3 04=1., ---.....,szr.__ ---- /4„.., z„, ►.....e �� +1;' c3; �JCr e ::0000 ,a% v ' ITS �r_01' = i. `•ik. ,ICJ q� ;S A, 1 � .' in n =- 1 ti �� fi' ,� t n'-:�� r IC:'' O�'z—, =--l' 006— , 1 " , : / ■. A!LT5F5 '.._, -ti 46 ' * _i _ " — 022 I `J \\ \ t .; .}.=_.9 tIti • A ir, .... , , . , ,......._.,, ,__, , II' `\ •E1 ' n _of t, . r ; 4, ,,, Agenda Item No. C (0-3 ( 0,1) 114-14 411 06 February 7, 1996 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Purchase of Service Agreements with Neighborhood Housing Services of Elgin (NHS) PURPOSE The purpose of this memorandum is to present to the Mayor and members of the City Council two Purchase of Service Agree- ments with Neighborhood Housing Services of Elgin. BACKGROUND The 1996 Budget includes $300,000 to capitalize a Home Im- provement Fund (HIF) and $97,300 for operational support. The HIF allows NHS to purchase, rehabilitate, and resell properties (please see attached January 16 letter from NHS Executive Director Stuart Wasilowski) . The program will turn distressed properties into neighborhood assets, most often by reducing the number of dwelling units. The proposed HIF is city-wide, focusing on established neighborhoods throughout Elgin. A sample pro-forma is attached (Exhibit A) . The proceeds from house sales would go back into the fund. The HIF would take the loss or receive the gain from any resell. It is anticipated that the majority of projects would be net losses, however, because by definition the NHS projects will be distressed properties on blocks that are currently suffering private disinvestment. The operational support allows NHS to expand its basic servic- es city-wide as well. Funding goes to add one lending opera- tions officer and an administrative operations director. The PSA for neighborhood development and support includes the "' Save Our Streets (SOS) program. Services also include home- ownership assistance, paint, tool library and special event assistance. Neighborhood Housing Services 1996 PSA February 7, 1996 Page 2 NHS continues to actively work with many partners including securing funds other than from the City. The balance of the NHS 1996 revenue (Exhibit B) is from fund raising ($79,500) primarily from local financial institutions, grants ($40,500) , rental for two ROPE officer sites ($17,640) , fees ($7,250) , and net proceeds from the sale of 205 N. Gifford ($27,500) . NHS will be required under this agreement to make quarterly reports on programs and activities . The annual operational support is renewable annually. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED The NHS Board reviewed the agreements at its January 25 meet- ing when the proposed 1996 NHS Budget was considered. LEGAL IMPACT None. FINANCIAL IMPACT Funding in the 1996 Budget is from the General Fund and the Riverboat Fund. There is $360,000 in Riverboat Funds (275-0000-791 .80-25) and $37,300 from the General Fund Non- Departmental (010-6902-719. 80-16 - $25,300 and 010-6902-719.84-01 - $12,000) . Since $300,000 (of the. $360,000) represents Riverboat Funds that were originally budgeted in 1995, a budget amendment will be necessary to reflect the 1996 expenditure. RECOMMENDATION The recommendation is to authorize approval of the two PSAs with NHS. Respectfully submitted, Cla J. Pearson, Director Code Administration and Neighborhood Affairs 1�•C_��Sr' 1 S . �__,_ Richard B. Helwig �""'� City Manager CJP/s l 1 NHS mac /Rehab Program Pro Fame-For Illustration puns only Mori Pro Forme Description Properly 1 Properly 2 Properly 3 Properly 4 Property 6 Property 6 Property 7 Property$ TOTAL Average Purchase Price $65,000 $95.000 $45,000 $85,000 $70,000 $100,000 $110.000 $75,000 $645,000 $60,625 NHS HIF Fund $16,250 $23,750 $11,250 $21,250 $17,500 $25,000 $27,500 $16,750 $161,260 $20,156 Mete Lender PMidpellon $45,750 $71,250 $33,750 $63,750 $52,500 $75,000 $82,500 $56,250 $483,750 $60,469 NHS HIF Fund-Rehab $40,000 $35,000 $40,000 $25,000 $30.000 $10,000 $35,000 $20,000 $235,000 $29,375 Tstst hrvesttMnt $106,000 $130,000 $65,000 $110,000 $100,000 $110,000 $145,000 $95,000 $680,000 $110,000 Sale Pdoe $110,000 $115,000 $95,000 $110,000 $105,000 $100,000 $125,000 $100,000 $850,000 $107,500 ProQILcee $5,000 ($15,000) $10,000 $0 $5,000 ($10,000) ($20,000) $5,000 ($20,000) ($2,500) MIS tor Fund Summery B eginning Silence $300,000 $305,000 $290,000 $300,000 $300,000 $305,000 1295.000 $275,000 $300,000 P $5,000 $0 $10,000 $0 $5,000 $0 $0 $5,000 $25,000 Loss $0 ($15,000) $0 $0 $0 ($10,000) ($20,000) $0 ($45,000) Remaining Binon Equity Fund $305,000 $290,000 $300,000 $300,000 1305.000 $295,000 $275,000 $260,000 $260,000 NHS HIF Fund Bince Year 1 Toby Wale Lender Investment $483,750 Total NHS Equity Fund investment $396,250 Total New investment $660,000 City of Etta brveMeerr*in Program $20,000 X i Lewrpe: Total Investment/Public Investment $44.00 In new Investment($880,000)to every$1.00 In City of Elgin Inveetment($20.000) rt •1 ��'�i Neighborhood Housing Services ',/•,� a of Elgin, Inc. /-A47,x 205 North Gifford Street•Elgin.Illinois 60120 • (708)695-0399 January 16,1996 Board of Director. Officers Mr.Richard HeM ig,City Manager President City of Eby Angel Rosenthal 150 Deter Court Resident Elgin,IL 60120 Vice President RE: NHS Capitalization Fund Denise Harding-Hopkins Resident Dear Mr.Helwig: Treasurer I am pease to report that the Board of Directors,has unanimously approved the resolution clearing the way Clay Pearson for NHS to provide services to the entire community. This resolution was passed in anticipation of the funding City outlined in the 1996 City of Elgin budget document. Secretary To summarize our discussions to this point regarding the employment of these resources I offer the following: Karen School: Funding: At Large Equity capital funding to a level of$300,000,hereinafter NHS Cap Fund; Additional operating funding to a level of$60,000 hereinafter Operating Funds; Director. Pule: Helen Below Resident NHS Cap Fund. Bonnie Conte •The general purpose of the fund is to afford NHS the opportunity aggressively pursue the acquis'ticn and Resident rehabilitation of strategic problem properties within the city limits.The capital e in effect the NHS equity capital Jack Darr r when leveraging private sector resources in the pursuit of the subject properties. It is our intent to Ltilize the City of Elgin NHS Cap Fund in both the acquisition and rehabilitation phases of projects.It is our intent to pursue Linda Kelly economically viable projects or projects that are essential to the economic viability to a given block,street or Resident neighborhood and that greater good is seen as a reasonable return for the community.We all need to Yvonne Mayes understand that this"investment,"capital a at risk but the intent is to insure the longevity of the NHS Cap Resident Fund.Therefore while some projects may be profitable,we fully expect some projects to be completed at a Larry McMurray loss while being"profitable"for a given block,street or neighborhood and that a greater good is seen as a Resident reasonable return for the community.The distribution of any dollar profits on the disposition of properties Augustine Semeno will be limited to the amount of the initial investment($300,000). It is fully understood by the NHS Board and Resident Staff that proper,appropriate,and ethical stewardship of the public's funds is absolutely essential. Jim Schneff Elgin Federal Financial Center Operating Funds. Ken Schuman The additional funding for operations will all for the expansion of staffing. Primarily,additional staff to Old Kent Bank ow manage lending operations and portfolio administration and secondarily administrative/accounting support Ginger At-Large-Large a ace staff. This funding will augment the funding committed by the city to support our community mobilization efforts within targeted neighborhoods. $beryl Traficano Resident David Towe We are prepared to execute an agreement and accept the above resources for employment in the Home Federal Savings community under the terms that are mutually agreeable.We look forward to hearing from you. Respectfully, •� f Stuart v�� _ j Executive Director Stuart Waellowski 4Ne ghbocArks R eeau.Reetalp t+�• A Member of the N.QhborWorks National Network NHS Propos Budget 1996 Statement of Income and Expenses BUD96Z Proposed 1995 Budget Percent Actual YID 10/95 Budget Change Income Fundraising Campaign 79500 75000 6.00% 79945 Purchased Service Agreement 97300 37300 160.86% 37300 NRC Grant 40500 20000 102.50% 20000 Fees&other income 7250 15300 -52.61% Rental Property 17640 3900 352.31% 4550 Purchase Rehab Program-Net 15000 0 Income Carryover 0 11450 11450 Total Income 257190 162950 57.83% 153245 • Expenses 200788 95407 Operating Services 25400 23575 Rental Property 18420 8500 Bads to Basics-Operating Expenses 11125 4750 Rte.Expenses 27084 Total Expense 255733 159316 Net Income 1457 3634 • r a< • • NHS Proposed Budget 1996 Revenue Projection BUD961 Proposed 1995 Budget Percent Actual YT010195 Comments Budget Change ) Fundraising Annual Campaign 75000 75000 79945 Based on 1995 performance Bike Ride 3000 3000 Based on 1995 performance Shopping Bag Sib 1500 Based on 1996 perfomrance r • Sub-total FundraWrg 79500 ^V PSA Income Staffing 60000 Approved in 1996 City Budget Neighborhood Development 25300 25300 25300 Approved in 1998 City Budget Office Support 12000 12000 12000 Approved in 1996 City Budget Sub-total PSA income 97300 NRC Grant income Marketing 4500 Expendable grant from Neighborhood Reinvestment Resident Leadership Conference 2500 Erperdabb grant from Neighborhood Reinvestment Office Phone System 1500 Espendabb grant from Neighborhood Reinvestment Board Devslaprne t 2000 Expendable grant from Neighborhood Reinvestment Back to Basics 30000 EUpendeble prat from Neighborhood Reimastment Sub-in i NRC Grant Income 40500 Fee income Membership 5000 500 memberships at$10 inaeesed from$6 Lab Charge Income 500 Estimated . Paint/Tool 500 Estlmiid Loan Fess 1250 EsiniMd Sub-total Fee Income 7210 Renal Income 161 Franklin 8040 $6701MONTH 311 Summit 9600 $800Anorth Sub total Rantal Income 17640 Purchase Rehab Program Ni Income from sale of Papaw 15000 Subtotal Purchase Rehab FL ._01I1e10 18!190 • TOTAL Revenue Projection 257190 • NHS Pro PD Budget et 1996 Salary/Benefits . • BUD96A SALARY Staff Proposed 1995 Budget Percent Actual YTD 11/95 Comments Position Budget Change Executive Director FT 52000 48400 7.44% 41560 Negotiated Contract expires 12/31195 Director of Lendkg FT 35000 New Position based on funding from COE Assoc.Director FT 23000 20800 10.58% 18306 Position undergoing review at responsibilities Office Adminstrator 14040 5523 New Position based on funding from COE ND Coordinator-13T FT 23000 5250 Position funded by Badc to Basics Grant ND Coordinator-1-1 FT 16320 6000 172.00% 6106 Position funded by Purchased Service Agreement ND Coordinator-BS 9360 9000 4.00% 10718 Position funded by Purchase of Service Agreement Staff Assistant 10400 New Position based on funding from COE Payroll Taxes Q 10%of Salary 18312 9356 6205 Sub-total Salary 183120 93556 95.73% 93668 BENEFITS Staff Proposed 1995 Budget Percent Actual YTD 11/95 Comments Position Budget Change Executive Director for 2500 2500 2444 Per Contract Director of Lending 2500 Estimated Assoc.Director 1500 1260 1112 Based on Previous experience Office Adn>instrator 1500 Estimated NO Coordinator-BT 0 Not covered by NHS policy NO Coordinator TI 1500 Estimated ND Coordinator-BS 0 Not covered by NHS policy NHS Contribution to Pension Plan 8168 All full time employees 5%match (35 hour/week) Staff Assistant 0 Not covered by NHS policy Total Benefits 17668 3750 369.89% 3557 Sub-total Salary/Taxee1Benents 200788 97316 97225 r iV 1 NHS Proposed Budget 1996 Operating Expenses BUD968 J I Proposed 1995 Budget Percent Actual YTD 11195 Comments Budget Change . Operating Expenses k Office Supplies 3000 2500 20.00% 2466 ' ` Telephone 2000 1500 33.33% 2596 • Gas 2000 2000 0.00% 840 Electric 1500 1200 25.00% 1388 Insurance-Office property 900 600 50.00% 1283 Phclopraphy 250 100 150.00% 140 Office Maintenance 500 750 -33.33% 568 Equipment Purchase-Copier 3000 500 500.00% 2322 Dues&Subsaip0cns 250 250 0.00% 366 Postage 3600 2500 44.00% 3386 Carwenenoe/Trauel 7 Staff®$400 2800 500 460.00% 2443 Tod Lancing 1000 0 ERR 454 Sub-total Operating Expenses 20800 12400 67.74% 18242 Professional Services General Legal Counsel 2500 2500 0.00% 2369 Auditor 2100 2925 -28.21% 1975 Sub-total Professional Services 4800 5425 -15.21% 4344 TOTAL Operating Expenses and Professional Serve* 25400 17825 22586 • NHS Propc 11 Budget 1996 Back to Basics Grant BUD86D Proposed 1995 Budget Percent Actual YTD 10195 Comments Budget Change Back to Basics Operating Expanses Office equipment 1350 _ Flyer/nag/defiers 1500 Budget approved by hoard 9185 Postage 3200 Special Events 3800 Travel 775 Contingency 500 Sub-total Back to Basics Operating Expenses 1112$ j� ) _ 1 • NHS Proposed Budget 1996 Rental Property Expenses BUD96C Proposed 1995 Budget Percent Actual YTD 10/95 Comment Budget Change r Rental Income (*4Q 161 Franldin 8040 5652 Rant at$670hnaNh • 311 Summit 9600 Rant at$800hnonth Sub-total Rental Income 171140 Proposed 1995 Budget Percent Actual YTD 10815 Budget Change Rental Property Expenses No Budget amount was allowed for this actisdly in 1995 161 Franklin Maintenance 500 Esti Bled expanses for maintenance 311 Summit Maintenance 500 Estimated apenses for neinWenoe ROPE Sirs Acquisition Expenses Petition for Tax Exempt Status 500 Staff time b prepare petition axes 161 Frarttd'n 7320 Cost of Mortgage® $610huonth 311 Summit 9600 Cast of Mortgage $8001nonlh Sub-total Rental Property Expense 18420 Net Income from Rental Property -790 Planned ROPE styes Income and Expenses are only incurred if properties are acquired for this purpose. • 1 NHS Proposed Budget 1996 ' Purchase Rehab Program BUD96F Proposed 1995 Budget Percent Actual YTD 10195 Comments REVENUE PROJECTION Budget Change Purchase Rehab Program 311 Summit Street ROPE Site 90000 Held for rent as ROPE Site 320 N.Spring 100000 371 N.Spring 85000 358-380 N.Spring 105000 358 N.Spring 100500 279 Mn Street 80000 Property for p rch ealRehab 80000 Property for purchasectehab 80000 Property for purr asemRehab 80000 Property for purchase/Rehab 80000 205 N.Gifford Street 112500 . 300 Douglas 15000 Sub-total Purchase/Rehab Revenues 1008000 EXPENSE PROJECTION Proposed Comments Purchase Rehab Program Budget 311 Summit Street ROPE Site 90000 ROPE Site Purchase+Rehab Costs 3200.Spring ton 128000 Purchase+Rehab Costs MF 000 Multi-Family Comersion Grant 371 N.Spring 95000 Purchase+Rehab Costs CAP Fund -12000 Capitsitzation 35880 N.Spring 110000 Fund from City of Elgin CAP Fund -12000 • Purchase+Rehab Costs 358 N.Sung 115000 Fund from City of Elgin Purchase+Rehab Costs 279 Mn Street 123000 Purchase+Rehab Costs MF Conwersion AAullt-Family Con ersion Grant Property for purcass/Re orb 85000 Purchase Property for pac hesdRdab 85000 Purchase Property for purdhaaalRehab 85000 Purchase Property for purchase/Ratub 90000 Purchase 206 N.Glffard 85000 Mortgage against property for rehab of 300 Douglas 300 Douglas 10000 Sale of vacant parcel,reimbursement to Mortgagor Subtotsl PurohaselRehab Ehpeness 993000 T Net Inco no/Evense from Pudpse&Rehab Program 15000 -� Total MF Conversion In mstment 84000 Total CAP Fund Imminent 24000 I