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HomeMy WebLinkAbout05-262 Resolution No. 05-262 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 Olufemi Folarin,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: August 24, 2005 Adopted: August 24, 2005 Vote: Yeas: 7 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 .144,-"a day of /)t) o -r 2005, 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, City is committed to the revitalization and strengthening of all neighborhoods in Elgin; and WHEREAS, NHS is incorporated to provide revitalization assistance within the city limits; and WHEREAS, City and NHS wish to work cooperatively to assist neighborhoods throughout Elgin,particularly older established neighborhoods 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 designate the Elgin Community Network, a citizen-based non- profit group of neighborhood organizations(hereinafter referred to as"ECN"),to conduct neighborhood organizing and outreach activities for NHS. Activities shall be as defined by the Collaboration and Service Agreement, attached to incorporated into this agreement as Exhibit A. NHS shall assist ECN by sharing expertise, knowledge and resources in community organizing available through NeighborWorks America (hereinafter referred to as "NWA"). NHS is a chartered member of NWA, a congressionally chartered not- for-profit organization that provides training, technical support and grants to local neighborhood housing services. 2. NHS shall encourage home ownership, sound property maintenance and housing rehabilitation for the betterment of Elgin's neighborhoods through outreach efforts and programs such as the First-Time Homebuyer's Down-payment Assistance Program and Revolving Loan Fund/Rehabilitation Loan Program as well as offering pre and post purchase education. The Executive Director will also be a member of the City of Elgin's Home Expo Committee. 3. NHS shall maintain the NHS Paint/Tool Lending Library, providing materials and supplies for home maintenance and improvement. 4. 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. 5. The NHS Board shall meet at least monthly. 6. 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. 7. 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 within the past thirty (30) days and has been found by the City to be in compliance with all applicable ordinances and grant program regulations. 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. 8. City shall pay NHS a total sum of Fifty Four Thousand Dollars and no/100ths ($54,000.00) to 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 fmancial statements fairly present the financial position of NHS and that NHS 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.). 9. NHS shall have an annual audit of its financial statements performed by an independent certified public accountant licensed to do business in the State of Illinois. Two copies of the audited financial statements shall be delivered to the City along with the Management Letter and any other correspondence related to internal control matters by June 1, 2006. 10. The City of Elgin shall be recognized as a sponsor of NHS and shall receive the benefits of sponsorship consistent with the level of financial support provided in this agreement. At minimum, the City's support shall be acknowledged in all brochures promoting the organization, WEB page information and press releases. Three samples of this acknowledgement shall be provided to the City. The City Seal shall be provided by the City to be used for this purpose. City Seal must be produced in all written publications in black or PMS 285 C blue. 11. 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. 12. 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. 13. 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. 14. NHS shall provide a written performance report detailing the disbursement of the $54,000.00 provided for herein. This report shall be provided to the City by December 31, 2005 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. 15. NHS shall provide City with financial statements relative to the organization's total operations. These statements shall be provided by July 31, 2005 and December 31, 2005. These reports shall be submitted to the City Manager's Office, City Hall, 150 Dexter Court,Elgin,Illinois 60120. 16. 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. 17. 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. 18. This agreement shall not be deemed or construed to create an employment, joint venture,partnership or other agency relationship between the parties hereto. 19. 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. The provisions of this paragraph shall survive any termination and/or expiration of this agreement. 20. Unless otherwise terminated as provided herein, this agreement shall terminate on December 31, 2005. 21. Either party hereto may terminate this agreement upon thirty (30) days written notice for any or no reason. 22. 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, 2005, NHS shall refund to the City on a pro rata per diem 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. 23. 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. 24. This agreement shall be subject to and governed by the laws of the State of Illinois. Venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this agreement shall be in the Circuit Court of Kane County, Illinois. CITY OF ELGIN NEI BORHOOD OU G SERVICES OF ip C. By �_�.� �._•.�.rw� B, Olufemi Fo : n . n W. Roberson City anage ,:oard President Attest: A.-43-14.14 /'L- ---- Dolonna Mecum,City Clerk NHS and ECN Partnership 2005-2006 Agreement Exhibit A Collaboration and Service Agreement NHS of Elgin and ECN This agreement, made and entered into this August 2005,by and between Neighborhood Housing Services of Elgin, Inc., an Illinois not-for-profit corporation("NHS") and Elgin Community Network, NFP, an Illinois not-for-profit corporation("ECN"). Whereas, the mission of NHS of Elgin, Inc. is a local agency dedicated to providing a strong foundation in the fundamentals of homeownership. We seek to strengthen and enhance our community by developing and administering programs and educational resources that foster homebuyer and homeowner education and community development. Whereas, ECN is an independent, citizen-based organization and its mission is to provide a structure for communication, collaboration and coordination between Elgin's neighborhoods, city staff and elected officials. This innovative, proactive program was initiated to promote resident involvement through the creation of Neighborhood Area Boards representing all interests in each area, and one central Elgin Community Network consisting of representatives from each of those areas. Whereas NHS and ECN were both founded by civic-minded individuals determined to improve Elgin by strengthening its communities, and each is a 501(c)(3)not-for-profit corporation. Whereas NHS and ECN have cooperated successfully in the past, such as the 2005 National Naeighborworks Week. Whereas NHS and ECN have determined that, by working together in partnership, each organization can better and more efficiently fulfill their respective missions. Services provided by NHS to ECN NHS shall provide, at no expense to ECN,the following services and facilities: 1) Office Space: Exclusive use of one desk, one chair, one file cabinet and one phone extension. ECN shall have one set copy of keys to the NHS offices. ECN shall have access to its desk and the conference room during all hours NHS's office is open for business(NHS's current business hours are Mon-Fri 9:00 a.m. until 4:30 p.m. NHS reserves the right to modify its office hours.) Prior notice is required for access to ECN's desk and/or the conference room during times NHS's office is closed. 2) Shared use of NHS's mailing address: NHS staff shall maintain an internal mailbox for ECN. 3) Shared use of NHS's office facilities, such as bathrooms, sinks, microwave, refrigerator, garbage and recycling containers. 4) Fund raising and grant writing consultation provided by NHS's Executive Director(maximum one hour per week if requested). Page 1 of 3 NHS and ECN Partnership 2005-2006 Agreement Services provided by NHS to ECN continued 5) Limited* use of local phone service: NHS staff will take phone messages for ECN. 6) Limited* use of the NHS's conference room . 7) Limited* use of NHS's copier machine. 8) Limited* use of NHS's fax machine. 9) Limited* use of NHS computers and printers for occasional, small printing jobs. 10)Limited* access to NHS's internet service provider. * NHS reserves the right to limit use of these facilities in its Executive Director's sole discretion. ECN to Furnish ECN shall supply its own requirements for the following: 1) Any necessary office supplies for ECN use. 2) Any computers necessary for ECN's day-to-day use(NHS's computers and printers are only available for occasional, small print jobs and occasional internet access.) Obligations of ECN ECN agrees as follows: 1) ECN shall apply for and use its best efforts to enter into a Purchase of Service Agreement with the City of Elgin.. 2) ECN shall participate in NHS's NeighborWorks Week activities in 2006. 3) ECN shall produce a quarterly neighborhood newsletter(The Elgin Community Builder) guaranteeing at least two pages for NHS's exclusive use. NHS's Executive Director shall have the right to review the newsletter at least three business days prior to publication, and may identify any areas to which NHS objects, which shall be appropriately modified or deleted. 4) NHS's Executive Director and ECN's Executive Director shall be invited to attend each agencies' Board of Directors' meetings. 5) ECN shall continue to participate in and partner with NeighborWorks America's Community Leadership Institute in 2006. 6) ECN shall distribute NHS's marketing and program materials at all events in which ECN is participating or is a sponsor. At all events, ECN staff shall be trained to answer basic questions about NHS, and shall refer any necessary follow up to the appropriate NHS Staff. Page 2 of 3 • • NHS and ECN Partnership 2005-2006 Agreement Additional Terms This agreement shall be effective upon execution and shall expire on December 31, 2006. In the event that NHS reasonably determines that ECN's activities require liability insurance, ECN shall obtain said insurance, naming NHS as an additional insured if so requested by NHS, prior to the participating in the activities which create the exposure. By their signatures hereon, each party represents that entry into this agreement has been approved by that party's Board of Directors. Accepted and Agreed:4Elgimudetwor1 NFP, an Illinois not-for-profit corporation By. - i It's xe utive Director Nei_ •• hood Hou 'n. .: ices of Elgin, Inc., an Illinois not-for-profit corporation By: 14 A. . \ It's Executi1'Direcr•r Page 3 of 3 • y-0F E( �� � c'ti Agenda Item No. City of Elgin Gyri 'l rr rr tp, TED Cit E L G -*— August 19, 2005 TO: Mayor and Members of the City Council NEIGHBORHOOD VITALITY FROM: Olufemi Folarin, City Manager r'4/s,es- RuthAnne K. Hall, Management Analyst SUBJECT: Purchase of Service Agreement with Neighborhood Housing Services of Elgin 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. RECOMMENDATION 1/0"' It is recommended that the City Council approve the Purchase of Service Agreement with Neighborhood Housing Services of Elgin, providing financial support in the amount of$54,000. BACKGROUND Neighborhood Housing Services of Elgin (NHS) was founded on May 26, 1981, and is a charter member of Neighborhood Reinvestment Corporation's NeighborWorks Network. The mission of NHS is as a local agency dedicated to providing a strong foundation in the fundamentals of homeownership. NHS seeks to strengthen and enhance the community by developing and administering programs and educational resources that foster homebuyer and homeowner education and community development. Since 1981, over $16 million has been invested by NHS's housing stock and in neighborhood development activities. Their partnership with the City of Elgin, area residents, and the business and financial communities has resulted in the rehabilitation of nearly one thousand properties in Elgin. In 2004,NHS provided its services to over 300 Elgin residents. To continue its service to the community, a new Purchase of Service Agreement with NHS has been prepared, providing $54,000 in funding. This funding provides NHS with operational support needed to conduct citywide neighborhood revitalization efforts. NHS will continue to assist Elgin residents and neighborhoods by encouraging homeownership, property maintenance, and housing rehabilitation. NHS will provide programs and activities as follows: fl.".. • Revolving Loan Fund/Rehabilitation Loan Program with diversified lending products. • Paint/Tool Lending Library. Purchase of Service Agreement with Neighborhood Housing Services of Elgin August 19, 2005 Page 2 • Community outreach efforts related to affordable housing issues. • Coordination of Neighborworks Week. • Elgin Homebuyers Expo Committee member. • Neighborhood Improvement Planning committee member for the Northeast Neighborhood Association. In addition, NHS recently created a new five year strategic plan which will focus on homeownership. As part of that strategic plan, NHS will begin in 2005-2006 by focusing on providing pre- and post-purchase housing counseling, providing more diversified lending products and engaging the Elgin community as a whole on affordable housing issues. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None TFINANCIAL IMPACT There are sufficient funds budgeted ($54,000) and available ($54,000) in the Riverboat Fund, account number 275-0000-791.80-25, to enter into the Purchase of Service Agreement with NHS /0*' for a total of$54,000. WEGAL IMPACT None. ALTERNATIVES 1. Approve the Purchase of Service Agreement with Neighborhood Housing Services of Elgin. 2. Modify the provisions of the Purchase of Service Agreement. 3. Elect not to enter into the Purchase of Service Agreement, thereby declining to support Neighborhood Housing Services. Respectfully submitted for Council consideration. RKH Attachements