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HomeMy WebLinkAbout06-22 Resolution No. 06-22 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: February 8, 2006 Adopted: February 8, 2006 Omnibus Vote: Yeas: Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk PURCHASE OF SERVICE AGREEMENT THIS AGREEMENT is made and entered into this ?ff day of re e QU,-2t/ , 2006, by and between the CITY OF ELGIN, Illinois, a municipal corporation (hereinafter referred to as the "City" ) , and Neighborhood Housing Services, a not-for-profit corporation organized and existing under the laws of the State of Illinois (hereinafter referred to as the "Service Provider" ) . WHEREAS, the City has determined that it would serve a beneficial public purpose to enter into an agreement with the Service Provider for the Service Provider to provide certain contract services as described in this agreement; and WHEREAS, the Service Provider represents that it has the necessary expertise and experience to furnish the Subject Services upon the terms and conditions set forth in this agreement . NOW, THEREFORE, 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 . The Service Provider shall provide all of the services pursuant to the terms and conditions and on the dates and times as described in the document entitled Neighborhood Housing Services - Scope of Services for 2006 Purchase of Service Agreement, attached hereto as Exhibit A and made a part hereof (such services including the terms, conditions, dates and times are hereinafter referred to as the "Subject Services" ) . In the event of any conflict between the provisions of this agreement and the provisions in Exhibit A, the provisions of this agreement shall control . The Service Provider represents and warrants that the Service Provider has the skills and knowledge necessary to conduct the Subject Services provided for in Exhibit A and that the Subject Services set forth in Exhibit A are integral parts of this agreement and may not be modified, amended or altered except by a written amendment to this agreement agreed to and executed by both parties hereto. 2 . The Service Provider shall address all inquiries and requests made pursuant to this agreement to the Assistant City Manager of the City or his designee. 3 . In connection with the Subject Services to be performed on other than City properties, the Service Provider warrants and agrees to maintain all facilities and equipment used in the performing of the Subject Services in a clean, sanitary and safe condition and free from defects of every kind whatsoever. Service Provider agrees and warrants that the Service Provider will periodically inspect all of such facilities and equipment for such purposes. Service Provider also warrants that the Service Provider and the Service Provider' s facilities and equipment used in the performing of the Subject Services are not now, nor shall be during the term of this agreement in violation of any health, building, fire or zoning code or regulation or other applicable requirements of law. In connection with the Subject Services on properties owned or controlled by the City, Service Provider agrees and warrants to use, and to cause persons participating in the Subject Services to use, through proper supervision and control, all facilities with due care, and to report all defects in or damage to any such facilities, and the cause thereof, if known, immediately to the Assistant City Manager of the City. 4 . The City shall reimburse the Service Provider for the Subject Services under this agreement the total amount of Fifty- Four Thousand Dollars ($54, 000) . Such payment by the City to the Service Provider shall be made in two installments of Twenty-Seven Thousand Dollars ($27, 000) . The first aforementioned installment payment shall be made within 30 days of the date of this agreement. The second aforementioned installment payment shall be made on or before July 30, 2006 . However, the second installment payment shall not be made prior to 8 days after the Service Provider' s submission of the budget document and audited financial statement documents referred to in paragraph 6 of this agreement . 5 . The Service Provider shall apply the monies to be paid by the City to the Service Provider pursuant to the proceeding paragraph hereof solely to operating expenses such as staff salary and benefits, meeting expenses, and expenses associated with the Subject Services to be provided by the Service Provider pursuant to this agreement . 6 . The Service Provider shall complete, maintain and submit to the Assistant City Manager of the City, or his designee, any and all records, reports and forms relating to the Subject Services in this agreement as requested by the City. Without limiting the foregoing, the parties further agree as follows : A. The Service Provider shall provide a budget to the City which shall reflect the projected distribution of funds received from the City pursuant to this agreement during the term of this agreement . The budget shall be submitted to the Assistant City Manager of the City prior to any payment by the City. -2- B. The Service Provider shall provide written performance reports detailing the disbursements of the monies to be paid by the City to the Service Provider pursuant to this agreement . The reports shall be provided to the City quarterly on March 31, 2006 ; June 30, 2006; September 30, 2006; and December 31, 2006 . C. The City has the right to review all accounting records of the Service Provider related to the use of the monies to be paid by the City to the Service Provider pursuant to this agreement upon 72 hours advance notice from the City to the Service Provider. D. The Service Provider shall have an audit performed on its financial statements for the year ending December 31, 2005 . The audit must be performed by an independent certified public accountant recognized in good standing by the American Institute of Certified Public Accountants and licensed in the State of Illinois. The Service Provider shall provide the City with two copies of the said audited financial statement along with the management letter and any other correspondence related to internal control matters on or before July 15, 2006 . These statements shall be submitted to the Assistant City Manager at City Hall, 150 Dexter Court, Elgin, Illinois 60120-5555 . 7 . In the event this agreement is terminated, or in the event the Subject Services for which the City funds provided herein are to be applied are discontinued, or the Service Provider ceases its operations prior to December 31, 2006, the Service Provider shall refund to the City on a prorated 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 the Subject Services were not conducted. 8 . Service Provider agrees and warrants that the Service Provider has procured all licenses, permits or like permission required by law to conduct or engage in the Subject Services provided for in this agreement, and that the Service Provider will procure all additional licenses, permits or like permission hereinafter required by law during the term of this agreement, and that the Service Provider will keep same in full force and effect during the term of this agreement. Service Provider shall perform -3- the Subject Services with due care and in compliance with all applicable legal requirements . 9 . The City of Elgin shall be recognized as a sponsor of the Service Provider and shall receive the benefits of sponsorship consistent with the level of support provided in this agreement . At a minimum, the City' s support shall be acknowledged on all print materials promoting the Service Provider' s organization, press releases, radio advertising, web page information and event program(s) through the following mandatory funding identification statement : "Funding for the organization is provided in part through the City of Elgin" . Three samples of this acknowledgement shall be provided to the City. A logo provided by the City to the Service Provider shall be used for this purpose. 10 . In all printed materials in which a City seal or logo is deemed appropriate, approval by the Public Information Officer of the City is required prior to printing. 11 . The term of this agreement shall commence from the date of the execution hereof and continue through December 31, 200_. 12 . This agreement shall not be construed so as to create a partnership, joint venture, employment or other agency relationship between the parties hereto. Service Provider understands and agrees that the relationship of the Service Provider to the City arising out of this agreement shall be that of an independent contractor. It is expressly agreed and understood that the Service Provider and the Service Provider' s officers, employees and agents are not employees of the City and are not entitled to any benefits or insurance provided to employees of the City. 13 . If either party violates or breaches any term of this agreement, such violation or breach shall be deemed to constitute a default, and the other party has the right to seek administrative contractual or legal remedies as may be suitable to the violation or breach; and, in addition, if either party by reason of any default, fails to within fifteen (15) days after notice thereof by the other party to comply with the conditions of the agreement, the other party may terminate this agreement . Notwithstanding the foregoing, or anything else to the contrary in this agreement, no action shall be commenced by the Service Provider against the City for monetary damages. In the event any legal action is brought by the City for the enforcement of any of the obligations of the Service Provider in this agreement and the City is the prevailing party in such action, the City shall also be entitled to recover from the Service Provider reasonable interest and reasonable attorney' s fees . -4- 14 . Notwithstanding any other provision hereof, the City may terminate this agreement at any time upon thirty (30) days prior written notice to the Service Provider. In the event this agreement is so terminated, the Service Provider shall be paid for services actually performed, and reimbursable expenses actually incurred prior to termination, except that reimbursement shall not in any event exceed the total amount set forth under paragraph 4 above. Additionally, in the event this agreement is so terminated, the Service Provider shall immediately cease the expenditure of any funds paid to the Service Provider by the City and shall refund to the City any unearned or unexpended funds. 15 . To the fullest extent permitted by law, Service Provider agrees to indemnify, defend and hold harmless the City, its officers, employees, agents, boards and commissions from and against any and all claims, suits, judgments, costs, attorney' s fees, damages or other relief, including but not limited to worker' s compensation claims, in any way resulting from or arising out of negligent actions or omissions of the Service Provider in connection herewith, including negligence or omissions or agents of the Service Provider arising out of the performance of this agreement and/or the Subject Services. In the event of any action 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 expiration and/or termination of this agreement . 16 . The Service Provider shall provide, pay for and maintain in effect, during the term of this agreement, comprehensive automobile liability insurance covering all owned, non-owned and hired motor vehicles used in connection with the Subject Services with limits of not less than $500, 000 per occurrence for damages to persons or property. The Service Provider shall also provide, pay for and maintain in effect, during the term of this agreement, worker' s compensation insurance in amounts required under the laws of the State of Illinois . At the request of the City the Service Provider shall provide to the City certificates of insurance regarding the insurance required in this paragraph. 17 . No official, director, officer, agent or employee of the City shall be charged personally or held contractually liable under any term or provision of this Agreement or because of their execution, approval or attempted execution of this Agreement . 18 . In all hiring or employment made possible or resulting from this Agreement, there shall be no discrimination against any -5- employee or applicant for employment because of sex, age, race, color, creed, national origin, marital status, of the presence of any sensory, mental or physical handicap, unless based upon a bona fide occupational qualification, and this requirement shall apply to, but not be limited to, the following: employment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. 19 . No person shall be denied or subjected to discrimination in receipt of the benefit of any services or activities made possible by or resulting from this Agreement on the grounds of sex, race, color, creed, national origin, age except minimum age and retirement provisions, marital status or the presence of any sensory, mental or physical handicap. Any violation of this provision shall be considered a violation of a material provision of this Agreement and shall be grounds for cancellation, termination or suspension, in whole or in part, of the Agreement by the City. 20 . The parties intend and agreed that, if any paragraph, sub-paragraph, phrase, clause or other provision of this Agreement, or any portion thereof, shall be held to be void or otherwise unenforceable, all other portions of this Agreement shall remain in full force and effect . 21 . This Agreement and its exhibits constitutes the entire Agreement of the parties on the subject matter hereof and may not be changed, modified, discharged or extended except by written amendment duly executed by the parties. Each party agrees that no representations or warranties shall be binding upon the other party unless expressed in writing herein or in a duly executed amendment hereof . 22 . This Agreement shall be deemed to have been made in, and shall be construed in accordance with the laws of the State of Illinois . Venue for the resolution of any disputes or the enforcement of any rights pursuant to this agreement shall be in the Circuit Court of Kane County, Illinois . 23 . The Service Provider certifies hereby that it is not barred from bidding on a public contact as a result of a violation of 720 ILCS 5/33E et seq. or any similar state or federal statute regarding bid rigging. 24 . As a condition of this contract, the Service Provider shall have written sexual harassment policies that include, at a minimum, the following information: A. the illegality of sexual harassment; B. the definition of sexual harassment under state law; -6- C. a description of sexual harassment, utilizing examples; D. the vendor' s internal complaint process including penalties; E. the legal recourse, investigative and complaint process available through the Illinois Department of Human Rights, and the Illinois Human Rights Commission; F. directions on how to contact the department and commission; G. protection against retaliation as provided by Section 6-101 of the Human Rights Act . A copy of the policies must be provided to the Department of Human Rights upon request (775 ILCS 5/2-105) . 25 . All notices, reports and documents required under this Agreement shall be in writing and shall be mailed by First Class Mail, postage prepaid, addressed as follows : As to the City: As to Service Provider: City of Elgin Neighborhood Housing Services 150 Dexter Court 300 Douglas Avenue Elgin, IL 60120-5555 Elgin, IL 60120 Attention: Sean Stegall Attention: Rich Jacobs Assistant City Manager Executive Director With a copy to: William A. Cogley, Corporation Counsel City of Elgin 150 Dexter Court Elgin, IL 60120-5555 26 . This agreement is and shall be deemed to construe to be a joint and collective work product of the City and the Service Provider and, as such, this agreement shall not be construed against the other party, as the otherwise purported drafter of same, by any court of competent jurisdiction in order to resolve any inconsistency, ambiguity, vagueness or conflict, if any, of the terms and provisions contained herein. 27 . This agreement shall be binding on the parties hereto and their respective successors and permitted assigns . This agreement and the obligations herein may not be assigned by the Service Provider without the express written consent of the City which consent may be withheld at the sole discretion of the City. -7- IN WITNESS WHEREOF, the undersigned have entered into executed this agreement on the date and year first written above. CITY OF ELGIN, a municipal Neighborhood Housing Services corporation Ali B • i Byw h / ' frb City M. ager V ll _\leC Attest : k4c-3 ea ) , City Clerk -8- EXHIBIT A NEIGHBORHOOD HOUSING SERVICES-SCOPE OF SERVICES FOR 2006 PURCHASE OF SERVICE AGREEMENT 1 . NHS shall coordinate with 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. 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 -9- 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 . Purchase of Service Agreement funds received from the City shall be deposited in a general purpose account but no commingled with funds restricted for special purposes. 9 . 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. 10 . NHS shall not provide any funds derived from City pursuant to this agreement to any director, employee, volunteer or agent of NHS for any person benefit . 11 . In addition to the requirements for an audited financial statement provided for in paragraph 6D of the agreement, 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 of the Service Provider, to include but not be limited to two signatures on each disbursement check and board approval of monthly financial statements (balance sheet, revenue and expense reports, etc. ) . -10- City of Elgin Agenda Item No. 'K\ .,riEELI January 20, 2006 fG I TO: Mayor and Members of the City Council N FROM: Olufemi Folarin, City Manager NEIGHBORHOOD VITALITY RuthAnne K. Hall, Managemen 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 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. O"' 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 the inception of NHS in 1981, they have invested over $16 million in 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. 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: • Revolving Loan Fund/Rehabilitation Loan Program with diversified lending products • Paint/Tool Lending Library Purchase of Service Agreement with Neighborhood Housing Services of Elgin January 20, 2006 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. It should be noted that Neighborhood Housing Services has complied with all the requirements for the prior year Purchase of Service Agreement. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT ofy____, 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 for a total of$54,000. 1 EGAL IMPACT 1+ , one. 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 Attachments