HomeMy WebLinkAbout03-118 Resolution No. 03-118
RESOLUTION
AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH
NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC.
FOR OPERATIONAL SUPPORT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that David M. Dorgan, 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 of Elgin, Inc . for
operational support, a copy of which is attached hereto and made
a part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: April 23 , 2003
Adopted: April 23 , 2003
Omnibus Vote: Yeas : 6 Nays: 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
PURCHASE OF SERVICE AGREEMENT
NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC.
AND THE CITY OF ELGIN
THIS AGREEMENT is made and entered into this day of
2003, 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 is committed to the revitalization and
redevelopment of certain areas within the city limits; and
WHEREAS, NHS is incorporated to provide revitalization assistance to within the
city limits; and
WHEREAS, City is committed to the revitalization and strengthening of all
neighborhoods in Elgin; and
WHEREAS, City and NHS wish to work cooperatively to particularly assist older
established neighborhoods throughout Elgin which are under stress.
NOW, THEREFORE, for and in consideration of the mutual promises and
covenants contained herein,the sufficiency of which is hereby mutually acknowledged,
the parties hereto hereby agree as follows:
1. NHS shall actively solicit neighborhood representation on the NHS Board
of Directors, through means including,but not limited to, notification to neighborhood
organizations of board vacancies and direct solicitation to residents.
2. NHS shall work with and support the Elgin Community Network, a
citizen-based non-profit group of neighborhood organizations (hereinafter referred to as
"ECN") and individual neighborhood organizations throughout the City by sharing
expertise,knowledge and resources in community organizing available through their
parent organization.
3. NHS shall designate sufficient staff to conduct neighborhood organizing,
leadership development and membership recruitment of ECN and individual
neighborhood organizations.
4. NHS shall provide assistance to the ECN and individual neighborhood
organizations in the dissemination of information to their respective memberships, and
will provide limited use of NHS facilities and equipment for preparation of materials.
5. NHS shall work with the ECN to expand the use of"The Voice"monthly
newspaper as the primary publication for the ECN, Neighborhood Area Boards and
neighborhood groups and contribute to its publication.
6. NHS shall co-sponsor the annual Neighborhood Expo event with the ECN
by helping to plan the event, assisting in identifying funding resources for the event and
providing support materials and supplies from the NHS lending library.
7. The NHS Board shall meet at least monthly.
8. NHS shall work cooperatively and proactively with the Resident Police
Officers, Neighborhood Officers and Neighborhood Liaison in matters promoting the
safety of neighborhoods and addressing quality of life issues in neighborhoods.
9. NHS shall actively seek to develop minority involvement in NHS
activities and in the community through outreach, including targeted communications
to organizations representing the minority population.
10. NHS shall actively investigate whether a new location for its primary
office is warranted in order to be more cost-effective and to reach those clients in
neighborhoods where its programs are most active.
11. NHS shall encourage home ownership, the conversion of multi-family
properties to their original use, and sound property maintenance for the betterment of
Elgin's neighborhoods.
12. All property, whether real or otherwise, under NHS ownership or control
shall be in compliance with all applicable City codes and ordinances, and all other
applicable law.
13. No real property shall be conveyed by NHS to a third party unless it has
been inspected by the Department of Code Administration and Development Services of
the city of Elgin within the past thirty(30) days and has been found by the City to be in
compliance with all applicable ordinances. In the event that the real property is found not
to be in compliance with the applicable provisions of the Property Maintenance Code
(Chapter 16.12 of the Elgin Municipal Code, 1976, as amended)and such property meets
the minimum standards of habitability, such property may be conveyed and occupied if a
written time schedule setting forth completion dates for all necessary repairs or
modifications is filed with and approved by the Department of Code Administration and
Development Services after being approved in writing by the authorized representatives
of NHS and purchasers of such property.
14. City shall pay NHS a total sum of One Hundred Seventeen Thousand Five
Hundred Dollars and no/100ths ($117,500.00), in two equal installments of$58,750.00,
the first of which shall be provided within thirty days of the execution of this agreement
and upon receipt of written assurances acceptable to the City by an independent auditor
that NHS financial statements present fairly the financial position of NHS and is
compliant with all its bylaws, all applicable law, and standard accounting and business
practices. In addition, an independent auditor shall attest that written policies and
practices are in place and have been followed to assure internal controls exist for the
proper accounting and disbursement of operating expenditures and grant funds; to include
but not limited to, Board review and approval of all invoices prior to payment, two (2)
signatures on each disbursement check, and Board approval of monthly financial
statements (balance sheet, revenue and expense reports, etc.). The second payment shall
be paid on or before July 1, 2003 and upon receipt of all required reports as stipulated in
this agreement.
15. NHS shall provide a budget to the City which shall reflect the projected
distribution of funds received from the City during the term of this agreement. The
budget shall be submitted to the City Manager's Office prior to receipt of City funds.
16. Purchase of Service Agreement funds received from the City shall be used
only for general operating purposes, including but not limited to utility payments, staff
salaries and for those activities expressly set forth in this agreement.
17. Purchase of Service Agreement funds received from the City shall be
deposited in a general purpose account but not commingled with funds restricted for
special purposes.
18. NHS shall provide two written reports detailing the disbursement of the
$117,500,provided for herein. These reports shall be provided to the City by May 31,
2003, and December 31, 2003 and shall include a description of all activity funded.
These reports shall be submitted to the City Manager's Office, City Hall, 150 Dexter
Court,Elgin, Illinois 60120, to the attention of the Management Assistant.
19. NHS shall provide City with fmancial statements relative to the
organization's total operations. These statements shall be provided by July 31, 2003 and
December 31, 2003. These reports shall be submitted to the City Manager's Office, City
Hall, 150 Dexter Court, Elgin, Illinois 60120, to the attention of the Management
Assistant.
20. 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 expenses incurred.
V
21. NHS shall not provide any funds derived from City pursuant to this
agreement to any director, employee, volunteer or agent of NHS for any personal benefit.
22. This agreement shall not be deemed or construed to create an employment,
joint venture,partnership or other agency relationship between the parties hereto.
23. To the fullest extent permitted by law, NHS agrees to indemnify, defend and
hold harmless the City, its officers, employees, boards and commissions from and against
any and all claims, suits,judgments, costs, attorney's fees, damages or other relief
arising out of or resulting from or through or alleged to arise out of any reckless negligent
acts or omissions of NHS or its officers, employees or agents in the performance of this
agreement. In the event of any actions against the City, its officers, employees, agents,
boards or commissions covered by the foregoing duty to indemnify, defend and hold
harmless, such action shall be defended by Legal counsel of the City's choosing.
24. Unless otherwise terminated as provided herein, this agreement shall
terminate on December 31, 2003.
25. Either party hereto may terminate this agreement upon thirty(30) days
written notice for any or no reason.
26. In the event this agreement is terminated or in the event the program for
which the City funds provided herein are to be applied is discontinued or NHS ceases its
operations prior to December 31, 2003,NHS shall refund to the City on a pro rata basis
the funds paid hereunder for the portion of the year remaining after any such termination
or for the portion of the year such programs or NHS operations were not conducted.
27. 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.
By iLlr G �% By / f , ,
1Vliri. ' Scott
City Manager Board President
Attest:
Dolonna Mecum, City Clerk
41 OF ESC/
City of Elgin Agenda Item No.
rnE
/?ZED FES• • r ..
April 4 , 2003 L ° _= ' s
G
•
1 _
TO: Mayor and Members of the City Coun it N
FROM: David M. Dorgan, City Manager NEIGHBORHOOD VITALITY
Deborah K. Nier, Management Ass stant
SUBJECT: Purchase of Service Agreement with Neighborhood
Housing Services for Operational Support
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with information to consider a
Purchase of Service Agreement with Neighborhood Housing Services
of Elgin for operational support .
BACKGROUND
NHS is chartered through a national , Congressionally-chartered
organization, Neighborhood Reinvestment Corporation (NRC) . The
NHS partnership is a structure fostering involvement and
cooperation from the community, bringing together citizens,
financial institutions and city government . Funding assistance
provided by the City of Elgin is supplemented by the funding
from local banks, grants and the NRC.
NHS staff works with both individuals and organizations to
promote home ownership, home maintenance and neighborhood
improvement . The organization meets regularly with neighborhood
groups to share information, discuss common challenges and
explore possible solutions to issues facing those neighborhoods .
The organization actively solicits neighborhood organizations
for membership on its board of directors . Newsletters and
informational publications are produced and distributed in order
that residents have the best information about NHS and its
programs . NHS works closely with staff of the ROPE program and
the Department of Code Administration and Development Services
in building safe and vibrant neighborhoods.
The subject Purchase of Service Agreement provides for a
rft. relationship between the City of Elgin and Neighborhood Housing
Services whereby financial support is provided for the agency' s
Purchase of Service Agreement with NHS for Operational Support
April 4 , 2003
Page 2
operational expenses . In return, NHS must maintain a
relationship with residents and neighborhood organizations which
promotes and sustains strong neighborhoods and provides a
mechanism for ongoing neighborhood improvement .
Among the provisions of the 2003 agreement are the following :
• NHS will maintain a supportive relationship with the Elgin
Community Network, assisting that group in identifying
funding sources, neighborhood organizing and with the
Annual NeighborFest Expo (new for 2003) .
• NHS will work with the Resident Police Officers and
Neighborhood Liaison in matters promoting the safety and
quality of life in neighborhoods .
• NHS will actively solicit neighborhood representation on
the NHS Board of Directors .
rft-
• Financial statements about the disbursement of City funds
and the agency' s total operations will be provided on a
periodic basic, including reports from an independent
auditor (new for 2003) .
• City funds shall be deposited in a general purpose account,
not to be co-mingled with funds restricted for special
purposes (new for 2003) .
The program and financial report for the 2002 operational
support is attached. NHS is currently working with an
independent auditor to complete a report of the organizations
financial condition. That audit report will be provided to the
City as soon as it' s available .
A City contribution in the amount of $117, 500 is being provided
for this purpose .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Neighborhood Housing Services
Elgin Community Network
Purchase of Service Agreement with NHS for Operational Support
April 4 , 2003
Page 3
(17)/j, FINANCIAL IMPACT
4(// Sufficient funds have been budgeted and are available ($ 0)
in the 2003 Budget to enter into this agreement , in the
Riverboat Fund, Account Number 275-0000-791 . 80-25,
Contributions .
\w0, LE AL IMPACT
None .
ALTERNATIVES
1 . Approve the Purchase of Service Agreement with Neighborhood
Housing Services as presented.
2 . Modify the Purchase of Service Agreement as proposed.
3 . Reject the Purchase of Service Agreement with Neighborhood
Housing Services as presented.
RECOMMENDATION
It is recommended that the Purchase of Service Agreement between
the City of Elgin and Neighborhood Housing Services be approved
as presented.
Respectfully submitted for Council consideration.
DKN/od
Attachments
FROM :NHS OF ELGIN FAX N0. :18476957011 Feb. 19 2003 03:27PM P2
City of Elgin
Purchase of Service Agreement Activity Report
NAME OF AGENCY: Neighborhood Housing Services of Elgin,Inc.
NAME& TITLE OF PERSON PREPARING REPORT: Rich L. Jacobs, Assistant Executive Director
TELEPHONE NUMBER: 847.695.0399
REPORTING PERIOD(CHECK ONE): XX JANUARY 1 —MAY 31, 2002
XX JUNE 1 —DECEMBER 31, 2002
PLEASE COMPLETE THE FOLLOWING: (use additional sheets)
L Describe the activities undertaken during the reporting period relative to the provisions of the
Purchase of Service Agreement. Including detail of activities, no.of clients served,type of service
provided,etc.
Neighborhood Housing Services of Elgin, Inc. ("NHS') was formed over 20 years ago to answer the
call of reversing the decline and decay of some of Elgin's oldest neighborhoods. Our mission; To
renew pride, restore confidence, promote reinvestment and revitalize the NHS neighborhoods through
the efforts of local residents, financial institutions, the business community, foundations and local
government. Over $16 million has been invested by NHS into Elgin's housing stock and in
neighborhood development activities, NHS is one of over 200 organizations working natiomvide to
revitalize older neighborhoods. This network of organizations makes up the NeighborWorks®Network.
The network is supported by Neighborhood Reinvestment Corporation ("NRC"), a congressionally
chartered not-for-profit organization that provides training, technical support and grants to local
neighborhood housing services.
Target.Population
NHS serves the entire City of Elgin.
Addressing the Needs of the Community
Maintaining Elgin's older housing stock has long been a concern of not only government officials, but
also residents. Well-maintained homes serve Elgin in many ways; they illustrate and preserve the unique
character of the varied styles of architecture and property costs in each neighborhood, they stabilize
housing values throughout the city, as well as make Elgin an affordable option for first time and low and
moderate income homeowners. The ability to continue to provide assistance to those homeowners that
are struggling to meet the demands of their homes is vital to not only NHS as an organization, but to the
continued resurgence of Elgin as a community that is perceived to have an increasingly brighter future.
How many people does your organization serve each year?
Most recently, NHS provided its services to approximately 300 Elgin residents during calendar year
2002. Historically, our partnership with area residents, the City of Elgin and the business and financial
communities has resulted in the rehabilitation of nearly one thousand properties across Elgin.
Flow is NHS of Elgin funded?
NHS isfunded through private donations from foundations, corporations and individuals, major support
from our localf nancial institutions,funds from the City of Elgin and the federal government.
r
FROM :NHS OF ELGIN FAX NO. :18476957011 Feb. 19 2003 03:28PM P3
Describe the activities undertaken during the reporting period relative to the provisions of the
Purchase of Service Agreement. including detail of activities, no.of clients served,type of
service provided,etc. continued
What types of programming doer NHS offer?
NHS achieves its mission by offering the following programs and services:
Revolving Loan Fund_'
Offered to primarily low and moderate income homeowners; NHS provides loans for home improvement
purposes, with special attention paid to the correction of code violations and health and safety issues.
NHS makes it loans to clients that would otherwise he unable to obtain financing from traditional
lending sources. Dunn._ the , omin: winter months NH .s• r r r v r. « 4'41 ter_ r.
rgpgj replacement or roof repair/replacement. Clients are frequently referred to NHS by area lenders,
realtors or City of Elgin Code Enforcement officials. These funds would assist in meeting the demand of
clients needing to make necessary improvements on their properties that might have otherwise been
undone. These repairs assist not only the homeowner in maintaining and improving the quality of their
housing, but also has a wider effect on the improvement of the entire neighborhood's housing stock
First Time Homebuyer Program: This program isfiinded with City of Elgin's Community Development
Block Grant (CDBG) dollars. Five year forgivable grants are offered to eligible Elgin residents who
would otherwise be unable to provide the down payment finding when purchasing a home for the very
first time.
Purchaase(Rehabilitcttiurr Xrugram:
NHS purchases the "worst of the worst" houses in some of Elgin's most distressed neighborhoods,
rehabs and resells them. Current project is at 361 Douglas Avenue.
R f2P., .Program:
NHS also houses six police officers in the City of Elgin's nationally recognized R.O..P.E. (Resident
Officer Program o(Elgin) in properties that NHS has purchased and rehabbed. NHS is and always has
been a strong supporter of the RO.P.E. program since its inception in 1995, and we take great pride in
the fact that the RO.P.E. program was partly responsible for Elgin's selection as an "All America
City". To date, NHS has invested approximately$200,000 directly into the R.U.P.E. program so that it
can continue to reduce crime in our neighborhoods far into the future.
Neighborhood Development:
Staff work with residents to form new neighborhood groups and provide support to existing groups.
Membership Program:
We are proud that our membership program has more than doubled over last year to 170 members who
purchased over 848 gallons of donated exterior and interior paint, at $1 a gallon, and rented over 80
tools in an effort to revitalize their homes. Paint may be purchased for $1.00 a gallon, and over 100
tools are available for rental through its tool lending library. Available to all members for a $10.00
annual membership fee.
j yblisher of The Neighborhoort Voice newspaper:
Circulation for the free newspaper is 10,000 and was launched in April 1996, The Neighborhood Voice
was designed to provide Elgin residents with news from neighborhoods around the city. The paper,
which can be found throughout Elgin, includes short articles about activities in Elgin, ads,
neighborhood group updates and a comprehensive listing qf Elgin's neighborhood organizations.
FROM :NHS OF ELGIN FAX NO. :18476957011 Feb. 19 2003 03:29PM P4
'~ IL Financial information. Provide a breakdown of expenditures related to services provided or
activities funded relative to the provisions of the Purchase of Service Agreement.
The funds from the City of Elgin's Purchase of Service Agreement was used for general operating
purposes Please,see the attached document for further details.
However, the City of Elgin may not be aware of the significant costs NHS incurs to make property
available to the R.O.P.F,. Program. in addition to the expense of acquiring the property and the high
cast of restoration, we make monthly payments of principal and interest for the mortgage on these
properties, and pay the substantial prverty taxes, insurance, City of Elgin rental license fees, etc.
Until recently, we have also paid substantial sums for maintenance and repair of the R.O.P.E.
properties We also provide the management and oversight of the R.O.P.E.properties without any
charge for overhead or staff time, and we have never even charged a security deposit for these
properties.
Research into the RO.P.R program demonstrates that, to date, the RO.P.E.program, has cost NHS
well in excess of$90,493.94. However, an additional amount of$120,194.62 was expended
according to our records,for maintenance and repairs to the R.O.P.E. houses. These expenditures
do not appear to have been required by the leases themselves, which seem to require that the City of
Elgin pay for ordinary repairs and routine maintenance. We do not receive anything to compensate
NHS for the salaries and overhead associated with the program. We do not currently charge any
security deposits NHS needs to enforce the lease provision with respect to repairs. According to
paragraph 3 of the Lease, which clearly provides that the Lessee(the City of Elgin), not NHS, is
responsible for ordinary repairs and maintenance, such as routine repairs to appliances,plumbing
fixtures, etc.For some time, NHS has made extensive repairs and performed much of the routine
maintenance for this property, despite the contrary provisions of the Lease. NHS'is committed to
making improvements to its ROPE properties at the lime of acquisition to make them inviting, safe
and comfortable, but it cannot continue to perform minor repairs and day-to-day maintenance at its
expense without raising rents even further.
According to the Housing Authority of Elgin, conservative.Elgin rental market lease rates are as
follows: 1 bedroom$782.00; 2 bedrooms$933.00; 3 bedrooms$1,166.00; 4 bedrooms$1,305.00;5
bedrooms$1,500.00 We currently rent all of our R O.P.R properties for amounts hundreds of
dollars less than the lowest defensible rate. Some of our three bedrooms currently rent for less than
a one bedroom should There should actually he a premium charged because these are single-family
dwellings with yards,garages, basements and other amenities few apartments would have.
Moreover, it is obvious that neither NHS nor the City of Elgin have bothered to obtain renewal
leases, and has simply allowed all of its leases to expire by their own terms, thus creating month-to-
month tenancies. By neglecting to have renewal leases executed NHS has inexplicably failed to
negotiate increases in its rental rates for many years. NHS must propose renewal leases to the City
of Elgin using the information above on Housing Authority of Elgin rates, The net impact of these
changes would be at least$26,584.00 in additional revenue in calendar year 2003. Each year we
would adjust our rates modestly upwards when renewing. For example:
Re:ROPE,House -58 Jackson Street,Elgin,IL-.Pursuant to the Lease,which expired on October 31,
2001,rent is can enely,lrxed at$1,200.00 per month Losses to date on this properly alone are well in
excess of$13,000.00. According to the Housing Authority of Elgin, the market rate for a house of this size
(five bedrooms)in Elgin is at least$1,500.00.
r
FROM :NHS OF ELGIN FAX NO. :18476957011 Feb. 19 2003 03:29PM P5
IL Financial information. Provide a breakdown of expenditures related to services provided or
activities funded relative to the provisions of the Purchase of Service Agreement,continued
For example continued:
Re:ROPE House--161 Franklin Sd eea Elgin IL --Pursuant to the Leave, which currently is on a
month-to-month tenancy, rent is currently fixed at$610.00 per month Losses to date on this property
alone are well in excess of$32,000.00. According to the Housing{Authority of Elgin, the market rate for a
house of this size(4 bedrooms)in Elgin is at least$1,30.5.00.
Re:ROPE House -275 McClure Street, Elgin IL —Pursuant to the Lease, which expired on February 1,
2003, rent is currently f lxed at$1,300.00 per month. Losses to date on this property alone are far in
excess of$20,000.00.According to the HousingAuthoriry of Elgin the market rate for a house of this size
(at least five bedroom arguably six)in Elgin is at least$1,500.00.
Re:ROPE House—311 Summit Street, Elgin IL—Pursuant to the Leave, which currently is on a month-
to-month tenancy,rent Is currently ently fixed at$800.00 per month. Losses to date on this property alone are
in excess of$14,000.00.NHS is simply unable to subsidize the rent for this property any longer.
According to the HousingAuthoriy of Elgin, the market rate for a house of this size(three bedrooms)in
Elgin is at least$1,166.00.
Re:ROPE House 392 Ann Street,Elgin,IL—Pursuant to the Lease,which currently is on a month-to-
month tenancy,rent is currently fixed at$800.00 per month. Losses to date on this property alone are
well in excess of$27,000.00. According to the Housing Authority of Elgin, the market rate for a house of
this size(four bedrooms)fn Elgin is at least$1,305.00.
01.6' Re:ROPE House—502 Raymond Street,Elgin,IL--Pursuant to the Leave, which currently is on a
month-to-month tenancy, rent is 4wrently,fixed at$1,000.00 per month Losses to date on this ptrperty
alone are in excess of$30,000.00.NHS is simply unable to subsidize the rent for this property any longer.
According to the HousingAuthority of Elgin, the market rate for a house of this size(four bedrooms)in
Elgin is at least$1,305.00.
NHS currently pays a$50 per unit rental license fee to the City of Elgin for each of the six R.O.P.E.
units it currently owns in order to turn around and lease each property back to the city. While the
purpose of such a fee is obvious and laudable,we believe a case can be made for an exception or
waiver of this fee for each of the NHS R.O.P.E.Program houses. NHS owns these properties
exclusively for the use and benefit of the City of Elgin and Elgin Police Department.
As was stated earlier, NHS is and always has been a strong supporter of the R.O.P.E. Program, and
we take great pride in the Program having been partly responsible for Elgin's selection as
an "All American City". We believe the program has been a tremendously success,}d collaboration
between NHS and the City; however, it was never intended for NHS to lose substantial sums as a
result of the program.
IIL Attach organization's financial statements for reporting period.
Due to the well-known, multi-pronged investigation into the activities of the former Executive
Director and former Lending Director, NHS has retained the auditingf rm of Mueller&Co. to not
only provide financial statements for calendar year 2002 but for 2001 and 2000 as well. This
information will be forthcoming as soon as it becomes available.
emk Signatu of Pens Completing Report ate
FROM :hWS OF ELGIN FAX NO. :18476957011 Feb. 19 2003 03:30PM P6
EXPENSE REPORT
2002 PURCHASE OF SERVICE FUNDS
EXPENSE ITEM AMOUNT
NEIGHBORHOOD DEVELOPMENT/ACTIVITIES $660.00
PAINT&TOOL PROGRAM $4,988.39
FUNDRAISING EXPENSES $1,354.92
MARKETING $2,442.10
POSTAGE $1,436.49
THE NEIGHBORHOOD VOICE EXPENSES $7,307.62
TRAINING CONFERENCES $4,813.43
SALARY- FULL TIME NEIGHBORHOOD ORGANIZER $24,375.01
SALARY- PART TIME NEIGHBORHOOD ORGANIZER $7,700.00
SALARY- PART TIME NEIGHBORHOOD ORGANIZER $12,685.74
UTILITIES- PHONE/ELECTRIC/GAS/WATER $9,104.11
300 DOUGLAS- MORTGAGE AND REPAIRS $22,251.75
ROPE SITES- REPAIRS
58 S JACKSON STREET $2,962.69
502 RAYMOND STREET $5,121.38
392 ANN STREET $2,765.33
161 FRANKLIN STREET $5,244.44
311 SUMMIT STREET $2,279.39
TOTAL $117,492,79
(11.11 2/5/2003
NHS Final and Approved Work Plan 03-27-03
NHS of Elgin Work Plan
Areas to be Addressed Plan for Resolution Responsible Party Completion Outcome Measurement
Timetable
Stabilize short term Obtain current Staff/accountants 2/28/2003 Walsh Produced monthly financials
operations financials submitted to LMC at NRC
Develop accounts Staff/accountants 3/15/2003 Receipt of AR statement by LMC at
payables statement NRC and present in monthly Board
and updated packets which are also submitted to
monthly NRC.
Develop projected Staff/accountants 3/15/2003 Receipt of cash flow statement by
12-month operating LMC at NRC and present in
cash flow and monthly Board packets which are
reporting format for also submitted to NRC.
board that is updated
monthly.
Insure financial Board 5/1/2003 Reduce monthly operating losses to
stability of less than$10,000 as measured by
operations. Phase I Walsh accounting firm produced
cash flow statement and monthly
financials
Insure financial Board 6/1/2003 Eliminate monthly operating losses
stability of as measured by Walsh accounting
operations. Phase II firm produced cash flow statement
and monthly financials
Develop and Board 4/17/2003 Board resolution approving a budget
approve budget that is attached to resolution and
delivered to LMC at NRC
Develop and adopt Staff/board 4/17/2003 Board resolution approving a
Staffing Plan staffing plan that is attached to
resolution and delivered to LMC at
NRC
Develop Settlement Staff/Board 5/31/2003 Board Resolution showing adopted
Strategy for settlement strategy showing
proceeds of lawsuits distribution of funds received.
such as:for General
Operations,
Deconversion
Payback,NRC RLF,
Bank Loans,new
staff and new RLF
capital.
Finalize contract Staff/board 4/30/2003 Signed city contract delivered to
with city on home LMC at NRC
buyer education
($75.000)
1
NHS Final and Approved Work Plan 03-27-03
Finalize contract Staff/board 4/30/2003 Signed city contract delivered to
with city on general LMC at NRC
operating
($117.500)
Release of first draw city/staff 5/30/2003 Copy of check or wire order transfer
for new city contract sent to LMC at NRC
of$117,000
Release of first draw city/staff 5/30/2003 Copy of check or wire order transfer
for new city contract sent to LMC at NRC
of$75,000
Receive$20,000 in Board/Staff 4/30/2003 Copy of check or wire order transfer
operating support sent to LMC at NRC
from private sources
NR releases$10,000 NRC 5/30/2003 Contingent on all the above
in operating funds items occurring and as measured
contingent on by DD signing grant processing
private/corporate/len letter faxed to NWO.
der support
Adopt staff work Board 4/1/2003 Receipt of Board resolution with
plan for new ED and attached ED work plan and
evaluation process evaluation process attached and
and schedule finalized ED contract.
�'""�•: =�`: _fr �
a �.` .. nwtv_�
Stabilize Lending Develop plan for Staff/NR/NR 2/28/2003 Receipt of Board resolution
program certification of Training Institute approving the plan and plan
homebuyer education attached and mailed to LMC at
NRC..
Updates by ED of ED Monthly Reflected in Board Packet and ED
completion of JIBE Report and mailed to LMC at NRC.
work plan.
Develop/update Staff/Loan Comm. Monthly Reflected in Board Packet and
monthly loan aging mailed to LMC at NRC.
status report
Negotiate Tommy 4/30/2003 Signed loan agreements allowing
forbearance or write Fittzgibbons/Ken for debt to be converted into
downs from lenders Moran/Rich Jacobs equity investments by banks and
and Board copies of agreements mailed to
representation LMC at NRC. Monthly NHS
financials reflect the new casting
of these assets as evidenced by
monthly financials.
Recast the NRC Elgin NHS Staff/ 4/30/2003 Measured in one of two ways: By
loan assets that Eric Youngeberg cash in restricted NRC fund from
are under sale of real estate ast listed below
collateralized with and reflected in the next month's
cash or a financial statement or by a
promissory note promissory note between ENHS and
NRC shown as a restricted asset of
NRC fiint#c
2
NHS Final and Approved Work Plan 03-27-03
Continue Staff/board 6/1/2003 Reduce delinquencies 46%to 35%
delinquencies as measured by Walsh produced
management, report showing and monthly loan
notifications, aging status sheets that are mailed
payoffs, to LMC at NRC.
fnrec:lnsnres etc
Verify and file liens "Loaned"loan 6/1/2003 Verified by an on site review by
/loan officers from bank lending MC from NCD who does a
documentation,etc. partners and Staff 10%random check on the loan
':�'4 t-;gi ''=`f,C3i t, s= -;b' .-$T�.- L ;:mss:f.a_ ?�"si'k. "5"' ' .L.r, n, .F,,�,-y+'f`ta r-<=r.��±fw.s7..::
���vcr„'r�sa>:F''��'�n� ' €'d...>:-.c',.�.`;�`.'2�t'�,'..> u'�e..-t� --".:�fs,:�A';ai€'. aresc'�'N''..��. ......_y.�#�S�i'�-"f r'._ts,..rs
Partnership Building Hold investors Staff/Board/NRC 3/26/2003 - Signed loan agreements allowing
meeting with Consultant-Tommy 4/30/2003 for debt to be converted into
lenders,city,and Fittzgibbons equity investments by banks and
NR and follow-up copies of agreements mailed to
meetings as needed LMC at NRC. Monthly NHS
to produce new financials reflect the new casting
agreements. of these assets as evidenced by
monthly financials.
Bi-weekly partner Staff bi-weekly Measured by receipt of bi-weekly
communication updates to LMC at NRC.
Plan for and hold Staff/Board/NR 6/7/2003 Measured by receipt of NW Plan
NeighborWorks and budget and use of COS
Week event's)ask funds to LMC at NRC and
for the approval on mailing of NRC approval letter to
use of previously ENHS.
approved
organization pilot
grant money and can
apply for next round
A ?i..:sks°; f. .*,.�N �-.�,. f� � -`#=' x:4=;` "= �:3;5r? _ --_ :;�s';;'- b,_t+'s'.;�'`_�,_ v •"'"�-''� u
::�A*Xi
Board Oversight Develop board Board/NR 3/27/2003 Measured by adopted Board plan to
recruitment strategy expand board that is mailed to LMC
and process at NRC. Accept new members and
expand residents to be 51%of board
and reduce city representation
Expand NHS board Board 5/1/2003 As measured by new Board member
with at least one being appointed by 5/1/03
new corporate
member and two
new resident rens
Develop and Board/NR 5/30/2003 Measured by LMC of NRC
implement board providing on-site Board Orientation.
training plan
Real Estate Board develops a Staff/City 3/27/2003& Measured by adopted Board
Development exit strategy for 4/17/2003 Resolution of the exit strategy and
ROPE program and copy of the letter to the city
notifies the city of terminating program and sent to
the same. LMC at NRC
3
NHS Final and Approved Work Plan 03-27-03
Appraisal and Staff 4/17/2003 Mailed appraisals to LMC at NRC.
approval on all
assets to be sold.
Sale of R.O.P.E. Staff 5/30/2003 Measured by listing contracts of
properties REO's ROPE homes and sale of one ROPE
house as measured by HUD-1
closing statement and mailed to
LMC at NRC.
Develop completion Staff Board Resolution showing exit
plan,specs and strategy for Douglas house and
funding plan for 361 attachment of rehab plan mailed to
Douglas street rehab LMC at NRC.
List and sell NHS Staff 5/15/2003 Measured by Board Resolution
current office calling for sale of the NHS office
building Phase I building and a Listing contract of
the NHS office building mailed to
LMC at NRC
List and sell NHS Staff/Board 6/15/2003 As Measured by HUD- 1 showing
current office all liens are satisfied on the building
building Phase II including NRC Capital funds lien
and private lender lien and HUD-!
Closing statement mailed to LMC at
NRC
liN -sbc? �.„�L >4'>''TA-„`z*
Planning Adopt interim work staff/Board 3/30/2003 Measured by a Board Resolution
out plan and Ad Hoc that adopts this work plan and
committee to attaches this work plan within the
monitor the same resolution and same resolution
that meets bi- names an Ad Hoc committee
weekly. charged with monitoring the
progress of this work plan and
Board resolution is mailed to LMC
MPC`
Develop long term Planning committee 6/1/2003 As evidenced by a Board
planning process /LMC NRC Resolution that adopts a planning
process (not a strategic Plan)to
position the ENHS in the
community within the next five
years.
Ask NRC to Board/NR 4/15/2003 Measured by letter from NRC to
substitute approved ENHS but only after the above
work plan in lieu of Board Resolution adopting this
previously work plan and Ad Hoc committee
"executed"MOU is received by NRC.
eft.
4
NHS Final and Approved Work Plan 03-27-03
Legal Issues Continue to pursue Board/lawyer Monthly and On- Measured by monthly confidential
legal remedies to Going update letters provided by the
recover corporate Sheffsky&Froelich law firm on the
assets status of all law suits(Knox
company,fidelity bond insurance
and D&0 insurance)and made
available only to the ENHS Board
and NRC.
Cooperate with Staff/Board 5/1/2003 Letter from the Kane County
authorities Prosecuting Attorney stating the
NHS is fully cooperation with the
investigation and mailed to the
LMC at NRC
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5